Dropshipping is a unique form of retail that allows retailers (dropshippers) commence or conduct commerce without buying stock or keeping inventory.
The drop shipper is simply a facilitator, middle-man, go-between, marketer who does on-demand retail.
And the best part? It’s available in a variety of different niches, including supplement dropshipping, dropshipping for health and beauty products – and even common housewares.
Are you entrepreneurial, innovative? If so, then this business model MAY just be right for you.
The Dropshipping Triangle below explains dropshipping from a unique angle.
The Dropshipping Triangle
Customers (1) place orders with Drop shipper (2), Drop shipper places Customers orders with Supplier (3), Supplier delivers products to Customers.
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According to recent Google Trends result, interest in dropshipping has more than tripled in the last 5 years.
The 5-Year Google Trend Of Dropshipping
Source: Google Trends
This means more and more people are getting on board dropshipping for some of the following reasons.
Benefits Of Dropshipping
There are businesses one can start with zero investment but dropshipping has the following advantages.
Freedom to work from wherever, whenever
Low or no startup capital
You pay supplier when shoppers pay you
You’re not investing your own money
You don’t need storage or warehouse facilities
Don’t need a showroom or rent store
Wide variety of products
Wide variety of merchants
Wide variety of customers
Global exposure
The Challenge
Dropshipping is an attractive business model due to low/no startup cost, but before you jump in there are key things to note.
In this article you will learn how to stand out and program your dropshipping business for success.
Key Areas Of Dropshipping
Platform, marketplace, storefront, supply chain, order fulfillment and customer service are some key areas of dropshipping. Problems arising in one or more of these areas can grossly impact margin.
Platform
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Shopify, BigCommerce, Magento are popular eCommerce platforms on which to build and run your online store. Things to consider when choosing platform include:
Free trial period
Price
Duration of contract
Support
Scalability
Themes
Apps and Plugins
Integrations
Payment gateways
Customer reviews etc
The other option is to self-host your web store on CMS like WordPress. This gives you more freedom and customizations but leaves all the crucial work platforms do for you in your hands e.g. auto-updates, backups.
Marketplace
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Amazon, eBay, AliExpress are known marketplaces that allow drop shippers and sellers open store and list products. Each has its advantages and limitations. When choosing consider:
Setup fees
Listing fees
Monthly fees
Any hidden charges
Payment options
Shipping destinations
Level of competition
Limitations
Customer reviews etc
Self-hosted stores offer unlimited customization and branding, zero on-site competition, less distraction and more opportunity for customer engagement with site content.
Storefront
Source: Pixabay
Your dropshipping website is your digital storefront. Product display, photography, distribution, description, landing pages, menu, calls to action, forms etc, are key areas. Your storefront doubles as your retail associate, it convinces shoppers to either buy or fly.
Watch out for:
Number of themes
Cost of themes
Updates for themes
Obtrusive landing pages
Lengthy forms with several repeat-input fields
Hidden menus
CTAs
Support
Integration with shopping cart
Payment gateways
Ensure your site is secured with https capabilities
Display trust marks if you have them
Display of social share buttons, contact information
Customer review of themes
Supply Chain
Source: Pixabay
A dropshippers supply chain is handled by dropshipping suppliers and/or manufacturers. This is a critical component of the business. The wrong supplier may deliver wrong or defective items that will return to hurt your reputation and revenue.
Conside...