Dropshipping has become the most favorite retail method due to its numerous benefits. There is no need to keep your product in stock, instead, you can partner up with a wholesale supplier. After you transfer the customer order to them, the supplier will send the goods directly to your customer. Since there is no hassle when it comes to dealing with the fulfillment or the inventory, it’s no wonder that the dropshipping business is on the rise.
If you are considering starting your own dropshipping business, here are some steps you should follow:
Reach out to Your Suppliers
Get in touch with the wholesalers online or by going through the yellow pages. Make sure you get all the information about the shipping time, shipping orders, warranties, so you could partner up with the supplier that can bring you the most profit. Check out their wholesale price and calculate which one fits your retail price the best. Most suppliers will ask you for your EIN number and a copy of state sales-tax or resale certificate. Therefore, sort out your legal documents before you contact any of your potential suppliers.
Choose the Right Product to Sell
Choosing the right product to sell on your web store will require some time spent on the research. First of all, take a good look through the product range offered by many suppliers. The next step is to choose the one that interests you the most and study the market. One tool that can especially come in handy is Google Keyword Planner Tool. It will show the right keywords that your customers are using in order to find their desired products. Naturally, avoid starting big. However, you can start your business with a couple of products and see how it goes.
Open your Web Store on an eCommerce Platform
When you got your supplier and products figured out, it’s time to choose the right eCommerce platform. There are many to choose from, e.g. eBay, Shopify, Amazon.com, etc. The obvious choice would be the most popular one, but do not let that fool you. Many online auction sites get a lot of traffic and because of that you should examine the market and see if there is any request for the product you are offering. Most of these eCommerce platforms offer free membership, so don’t stick to just one. Search the others and offer your products as to attract more customers.
Manage the Returns
Some customers will not be pleased with their purchase due to occasional mistakes. Therefore, it is important to put your customer first. Follow the return policy that you agreed upon. However, in order to avoid restocking fees with the supplier, why not stock the goods in your own storage until you find a potential customer? In addition, renting a storage unit like the ones offered by Supercheap Storage NZ enables you to store the products that don’t require shipping or that are meant for the customers living in your hometown. In the end, by putting a detailed product description and clear photographs, you can notably reduce the number of returns.
Deal With the Listings
In the dropshipping business, you should reveal the location to your customers in the listings. In case your wholesale supplier is located abroad, the order may take a while. As to avoid any complaints, it is probably the best to notify your customers about it. Therefore, when you have decided on the items, list the location of your supplier on the e-commerce platform. Then your customers will know that the shipment might take a bit longer. After the product is paid for, you can make an order. Then you will pay to the supplier who will send the goods right to the customer.
The Business of Tomorrow
Dropshipping is the business of tomorrow and if you wish to make it big you’ll have to launch your web store today. Naturally, getting started is the hardest part that will require investing your time and some money. However, the profit that you can gain in the long-term does pay off, leaving you with more time to market your brand online and less time to stress about the inventory. So get set and start today.