WHAT IS DROP SHIPPING? HOW TO DO IT?
- Admin
- Apr 10, 2018
- 3 min read
WHAT IS DROP SHIPPING?
Wikipedia defines it as,
"Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price, but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer."
You must know that what retailers do. They simply buy goods from wholesaler and sells it with greater price. Drop shipping has similar idea but slightly different. Retailer needs to buy and stock goods to sell but, things doesn't go like this in drop shipping. But, its way profitable. You don't have to buy a huge amount of product and stock them and worry if you could sell it or not. You save the space to store and risk of unsold stocks.
HOW TO DO DROP SHIPPING?
Before doing drop shipping you need certain things for successful business,
1) Online or Offline stores:
At first you need store with listing of product. The store may be online or offline but you must have store. Via store you get the order of products from customers and via store you show people what you offer in selling.For online store, shopify may be best choice.
2) Proper Research on products:
After setting up your stores now you must know what people seeks and buys from internet. For that you can use various tools like google alerts, google trends and many more. You must choose such products which you can sell, not which offer large commission and you know nothing about it. The main and most important factor is product's quality. You must offer high quality pro
3) Little investment or negotiate with wholesaler:
You need to invest for dropshipping.Investment goes for creating store and marketing products and also order product from wholesaler. You need to set up goal for selling and should have enough balance to order that much of supply. You can also make a deal with wholesaler for selling their goods. This negotiation can reduce your investment to far extent. If you convince properly there may be possibility that investment is zero.
4) How to Deliver your products:
After you setup all these, you need to figure out how to deliver your ordered product. There may be many options like shipping through FeDex, DHL, free mail service and so on. But If you wanna sell your products within your city then you must get delivery boys or you have to deliver them yourself. If the delivery charges are included in your profit, you can deliver them marking free delivery.
5) Check and analyze your sales:
Its very important to check your business status and take action for improvement. Immediate action may lead to huge profit, but negative reviews may collapse business in no time, so its very important to analyze your business frequently.
6) Marketing:
For any business you need to do marketing. Without marketing all the above actions are useless. Make sure that your marketing strategies are working one. Nowadays, there are many ways for marketing. You can promote your store in facebook, instagram, twitter, youtube and many more platforms in cheap and in efficient way.
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