Dropshipping is a selling method that can be used by retailers with a store, or through a catalog. In recent times, it is used primarily by online retailers, also known as e-commerce sites. The big advantage of dropshipping, besides the convenience of not having to stock or ship inventory, is that the retailer doesn’t have to outlay money to purchase the product in advance. They only order and pay for the item(s) after they get and are paid for an order by one of their customers.
Dropshipping is a selling method that can be used by retailers with a store, or through a catalog. In recent times, it is used primarily by online retailers, also known as e-commerce sites. The big advantage of dropshipping, besides the convenience of not having to stock or ship inventory, is that the retailer doesn’t have to outlay money to purchase the product in advance. They only order and pay for the item(s) after they get and are paid for an order by one of their customers.
You should try to match your product line with your interests, knowledge and even passion. The more energetic you are and being an “expert” about what you sell, the more likely you will succeed. Next, the product should have a certain niche, such as being unique, hard to find, meets the demand of a narrow and definable group of customers, or price.
Then, you need to fully analyze in advance if your business will be profitable. You must be able to sell your product to enough customers and in enough quantity to realize you enough profits. This should be done through market research including fully researching and analyzing the marketplace – which includes potential customers, suppliers and competitors.
Without a reliable and profitable source of supply, you will have no business. If your product is too hard to get, too expensive, too unreliable, etc. – your chance of success will be very small. There are many suppliers who do fulfill dropshipping orders – you can find them on dropshipping websites and by looking for online wholesalers and distributors.
In choosing a supplier, you should check that:
– They have the right kind and quality of products to satisfy your customers
– They will send you product samples before you commit to selling their products
– They have verifiable references and referrals from other retailers who do business with them
– They have reliable, efficient and cost effective shipping to your customers
– They will not steal (pirate) your customers from you
This is part of target marketing. The web is a gigantic place and unless you have a fortune to spend on advertising, you need to as fully and completely as possible know who your customers are – so you can reach them, so they know you exist and what you have to offer them. By really knowing who your prospective customers are, you will know how and where to reach them. This will allow you to use social media and the type and content of your “message” with maximum results and with minimum costs.
Also, with this knowledge, you will be able to utilize the very strong advertising methods available on Google, FaceBook and other big websites – again with maximum results and in a cost effective manner.
You need to design, launch and maintain an online presence – a virtual store or many stores. This is where your customers will explore and see your products for sale – and place and pay for orders. There are many services and platforms that will build and maintain such stores (e-commerce sites) for you. It is important to regularly monitor these sites and to keep adjusting them for maximum effectiveness.
The sites you use should incorporate some sort of CRM mechanism, to keep track of your customers, their orders and to keep them happy. Try to maintain a variety of these platforms to reach as many different niches that you may have and not to put “all your eggs in one basket”. Also, don’t just sell products – offer information, advice and other value-added content.
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