Dropshipping is one of the more popular forms of e-commerce that allows you to sell products without having your own warehouse or investing in large quantities of stock. It's a simple way to make money by selling online. All this makes dropshipping an ideal solution for those who want to try their hand at business without risking too much.
Dropshipping - what does it involve?
With dropshipping, the seller does not need to keep the goods in their own warehouse. Instead, he works with suppliers or wholesalers who have the products in stock. When a customer places an order, the goods are directly sent by the supplier to the customer. This means that the retailer does not have to worry about storing goods, handling shipping or managing stock.
Dropshipping - when is it worthwhile?
Dropshipping is the perfect solution for anyone who wants to try their hand at trading with little risk. It's a perfect example of a business model with a low entry threshold. You don't need to buy goods - all you need to start your business is a website or an account on a sales platform integrated with the supplier, i.e. a wholesaler. All processes related to storage, packaging or shipment of goods are transferred to the supplier, while you, as the seller, can focus on such aspects of business as marketing or customer service.
At first glance, the dropshipping model seems like a very good and cost-effective solution for everyone - but it won't work for everyone. Dropshipping is certainly a good idea to start with - when you want to see if you will prove yourself as an online retailer.
Dropshipping - how do you get started?
If you want to start dropshipping seriously, you should set up your own business - without that, you're not going to get started. It's rare that a wholesaler will want to work with an unregistered business.
The next step is to choose the right wholesaler to work with. We won't hide the fact that this is a crucial step - a smooth collaboration with a supplier will make your work much easier. Remember that your business success actually depends on the wholesaler - they are the ones who have your products, they are the ones who take care of packaging and shipping the parcels to your customers. However, if something goes wrong along the way, all the customer's resentment will fall on you. That's why it's worth taking the time to research and choose a good wholesaler - online wholesaler Ikonka recommends itself as a supplier of your goods. Here you can find all the information you need to know about working with Ikonka in the dropshipping model - CLICK.
Dropshipping - how to sell?
When you decide to dropshipping, you have 2 options for selling your products - you can set up your own online shop or register with an external sales platform. It is really your responsibility to display and promote your offer - the rest is up to the supplier. Remember that thanks to the integration with the wholesaler via an XML file, you get descriptions and photos of all the products in the package - you can publish them on your sales channel without any worries. However, it is worth thinking about taking your own product images - you are not the only one who can use the files provided by the wholesaler. If you don't want to be another 1:1 copy of the same offer, you need to work on standing out from the crowd of dropshippers.
Dropshipping - where to promote yourself?
The most commonly seen form of promotion chosen by dropshippers is posts in Facebook groups. However, this is not the only route available.
A free (at least in part) way to advertise is still social media - set up a Facebook or Instagram account and promote your business there.
If you have an online shop, it is worth looking at it for SEO. Generally, optimising a website for search engines is time-consuming and requires a bit of effort and commitment, but a high position for your products in Google results really is worth the candle.
The downsides of dropshipping
Dropshipping seems like a fantastic choice for everyone - low entry threshold, virtually no risk, no need to have your own warehouse and store your goods. Sounds great! However, this sales model also has its downsides.
The biggest bane of dropshippers is huge competition - too many sellers can offer exactly the same products. Very high competition has its consequences - the more sellers have this product offering, the lower margins can be imposed.
Another huge problem can be the products themselves - as a dropshipper you have no control over the quality of the goods on offer. If the wholesaler you are working with has poor goods on offer, all the responsibility will fall on you anyway. Another problem that arises on this occasion is unfamiliarity with the products - you need to be prepared that your customers may ask for details of the offer. If you have never had the product on offer in hand, you may have trouble answering questions specifically. Remember that good customer service is your company's calling card and you should make every effort to keep it as high as possible.
In conclusion, dropshipping is a great solution for starting your online trading adventure. Unfortunately, this model, in addition to some strong advantages, also has a lot of disadvantages, so it is also worth having in your future plans to expand your business and sell in the classic model.
