Dropshipping

 

What is Dropshipping:

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.

How Does Dropshipping Work

The dropshipping process and business model is quite simple. This business model is a partnership between a retailer who sells products online and passes the customer orders to a supplier who manufactures and/or warehouses the products.

The third-party supplier then packages and ships the orders directly to the customers in the retailer’s name.  Almost any product can be dropshipped, but to succeed with this business model, you need to pick the right products and market them to the right audience.

4 Steps to Starting a Dropshipping Business

Starting your own store is easy  all you need to do is identify your niche, choose the right platform, and connect with the right dropshippers.

Here are the steps you should follow to start:

1. Select products

Once you have identified your niche, you need to select in-demand products so that you can successfully run your store.

2. Select a domain name for your store

You need to select a domain name that resonates with your niche so that customers can find you online.

3. Choose a hosting platform

WooCommerce lead the pack when it comes to platforms. With WooCommerce, all you need to do is pay for the domain name and hosting of your store since it is a free WordPress plugin.

4. Select a plugin

Plugins are easy to use and can quickly connect you to good dropshippers and speed up the whole setup process. The plugins that will automate the import of dropship products directly from your dropshippers warehouse to your store with a single click.

 

The Benefits of Dropshipping

·       Money doesn’t need to be paid upfront to acquire the inventory, which means that if the business does not pan out, the only money you have lost is what you paid to get your website started

·       Your business is less susceptible to loss of revenue as a result of changes in tastes or trends because there is no such thing as excess inventory

·       Lower volume niche products can be offered alongside popular best sellers.

·       New products are less expensive to launch because they do not require an investment before they can be sold

·       Often, you have access to better shipping rates through a dropshipper than you would as a small business shipping your own packages

·       The number of goods that get damaged during shipment is generally lower when using dropshipping because it reduces the number of times that the product has to change hands.

·       All the hassle of packing of products to prepare them for shipment is taken care of for you

·       You can add new products to your offerings very quickly.

·       A storage facility or retail location is not needed—just the website where the items will be sold

·       Your business can offer a wider variety of products than would be possible if you had to buy and store all of the items you decided to sell

·       Products that are impractical to store (ex. large products, perishable products, etc.) are easier to sell.

 

Why is Digital Marketing Strategy Important for Dropshipping?

Digital marketing planning and strategy is important to every company in every industry. And this definitely holds true for dropshipping and eCommerce businesses. After all, you don’t have to worry about inventory or suppliers.

 

Here’s why:

1. Competition is at an all-time high

The increase of competition in every niche imaginable, which forces every dropshipping business to seek a competitive advantage.

You’re fighting for traffic, engagement, and of course, sales.

A digital marketing strategy will allow you to position yourself strongly against established competitors while protecting against newcomers to your industry.

2. Out of Sight, Out of Mind

You don’t want your brand to be “out of sight, out of mind.” You want it to be visible to your audience, no matter where they look. It takes over 4 impressions for your dropshipping business to get someone’s attention, so don’t be discouraged when you don’t make a sale right away.

If they search one of your primary keywords online, you want your website to show up at the top of the organic search results.

When they’re scouring social media for fresh content, you want your updates to be among the first ones they see.

When they check their email inbox, you want to greet them with a special offer.

3. Brand Building

Your target audience should know what your company does. You should be selling a lifestyle, a mission, something people connect to on a deeper level. You should be able to distinguish yourself from your competitors by building an inimitable brand.

Many dropshippers will allow you to supply your own labels, so customers don’t even need to know that you are using a drop shipper rather then sending them their merchandise personally. The increase in dropshipping providers and offerings has made it easier than ever to start an online store.