Category: About Drop Shipping

Coach dropshippers why you should choose drop shipping for e-commerce business. And how drop shipping works.

How To Start A Dropshipping Business

by Cherry Chen
How To Start A Dropshipping Business?
Here are some brief tips to help you start your very own dropshipping business. 1.Select a Niche There are two routes you can take when selecting a niche. If sales are your highest priority then your best bet is to do some research. Identify the types of products that are in constant demand and find the optimal way to present those products to a specific demographic. Another method is to consider the things that you are genuinely passionate about. If you already know the best products that surround a specific interest, then it would be that much easier to cater to that niche. Having a clear idea of the types of customers you are trying to target will help you make sales further down the line. 2.Build a Brand Once you have an idea of who your customers are and what products they are most likely going to buy, it’s wise to consider how you’re going to present the products to them. In other words, how do you intend on branding your business? You wouldn't buy fine jewelry from a random person on the street corner? Neither will potential customers buy products from a website that looks the same as all the others. You have to stand out from everyone else and the best way to do that is to create a Branding Guideline. Do you have a logo or particular color pallet that you’re going to use. What is your website's layout, what fonts best depict your brand? Will each order come in custom packaging? These are all things to consider when building a Brand Guideline. 3.Find Reliable Suppliers The suppliers you choose will make or break your brand, so it’s very important for you to choose based off of reliability. The higher you are in the supply chain will dictate how wide your profit margins will be. Meaning the less people that are in between you and the manufacturer will allow for greater profits. You may want to whitelist products that are already in production, meaning placing you logo on a product that’s already made. Or you may want to private label a product. Meaning that you have an item custom made exclusively for your brand. Or you just want to simply sell products from your website and nothing more. Whichever the case, it is your supplier that will be shipping these products on your behalf. Therefore it is important to ask which shipping method works best for you and your customers. 4. Logistics At present, there are four categories for Dropshipping Methods: commercial express delivery, China post, special line and overseas warehouse. First of all, choose the appropriate shipping method in accordance with the products characteristics (size, type, etc.). Secondly, shipping methods should correlate to the shipping level, customs clearance requirements and capabilities of different market destination. Finally, dropshippers should clearly list all the characteristics of the provided shipping methods to customers, as in how long it may take and where the products are being shipped from. 5.Build your website Now that all the technical stuff is out of the way, here comes the more creative portion of running your own business. Remember the Branding Guideline mentioned earlier, now is time to put that information into use. It's important to reference your guideline when designing your website and all it's assets. This will ensure that your brand achieves a high level of consistency. In the end you want your website to look as professional as possible. The more a potential customer can trust you at face value, the more likely you ware to receive a sale. The level of your customer service you provide will ensure a higher retention rate. While your advertisements and credibility will draw new customer in. Be sure to make pages that clearly state your contact information, Return and Privacy policies as well as a general FAQ page. 6.Traffic and Advertising Marketing is the money maker in this industry and you can only go so far via word of mouth. It's important to have some knowledge of SEO when creating your store. So that way search engines will favor your website when keywords are are used by potential customers. You may choose to create a blog for your store to organically drive traffic to your listings. But by far the most effective way to get your store in front of the right eyes is to master Facebook ads. We highly suggest you spend some time researching the basics of the Facebook Ad Manager. It will defiantly help to send the right people to your website. And depending on how well your website is designed and how effective advertisements are will determine your conversion rate, or the frequency you make sales. Keep in mind that most e-commerce stores have a conversion rate of 1-2%. This means that for every 100 visitors you are most likely going to get one or two sales. Therefore the more traffic you can drive to your store, the more likely you are to convert a sale.
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Seven Reasons Why You Should Choose Drop Shipping

by Cherry Chen
Seven Reasons Why Should I Choose Drop Shipping?
Here is a graph taken from Google Trends showing the incline of interest dropshipping as had over the last 5 year. Clearly an interest for this business model has climbed steadily over the years. So what’s the hype all about and why are people rushing to incorporate this business into their lives? Two words, “Passive Income.” People are striving, now more than ever, to increase their quality of life. Here are 7 reasons why this business model is so appealing. 1. Easy to start: You can technically have a shop up and running within a day and have units sold within a week. It literally never been easier to start your very own business. 2. Low cost: Most goods are manufactured in China because the cost of production is rather low. And because you don’t necessarily need to buy inventory, it means you can purchase your stock as you make a sale. The higher you place yourself up in the supply chain gives you have access to products at its lowest cost. Enabling you to charge for those products at a more profitable margin. And because this is a web based business model, there’s no need to pay rent for a storefront or warehouse. 3. Low risk: Testing the marketability for any given product can be relatively cheap. You can scale and buy inventory once you found a real winner. When playing your cards right, overhead should be a non-issue. 4. Customer retention possibilities: It’s possible to structure your business in a way that has customers buying from your store every single month. If you’re constantly testing all your products and rotating the winners throughout the seasons, you can find a way to stay profitable every month throughout the entire year. 5. Set your business on autopilot: We live in a day and age where anything can be automated. If you’re willing to put in the time and effort upfront, then you can set up a system that allows you to import and process orders in one click. The tools are out there, you just have to find them and learn them. It is a lifesaver for those with busy schedules, full-time jobs or are currently in school. 6. Enable expansion into new markets: Sometimes getting products across international borders can be challenging, not to mention costly. But if you do your research and partner with suppliers who are strategically located, you can often get the same or similar product to almost any region. This permits you to test the market and validate if a given product is worth importing. 7. Virtually unlimited inventory: One of the main reasons the dropshipping industry exists is to help retailers and suppliers combat inventory distortion: the problem of over-stock clearances and out-of-stock shelves. Theoretically, by tapping into inventory further up the supply chain, you can get access to virtually unlimited inventory. By contrast, dropshippers may find it harder to work with Amazon and eBay. As their policies do not support the dropshipping business model. Preferring retailers to buy inventory of products and fulfill orders manually. Which means a higher investment for the retailer and therefore higher risk. Not only that but entrepreneurs find it hard to convert sales when linking their Ebay and Amazon product pages to their advertisement.
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How Does Drop Shipping Work?

by Cherry Chen
How Does Drop Shipping Work?
Here are six simple steps explaining how drop shipping works:: Step1: Retailer determines a target audience and what products best suits their needs. Step2: Retailer partners with Suppliers that can fulfill orders on demand. Step3: Retailer then lists the products on their personal ecommerce website. Step4: Customer places an order on the Retailers website, typically paying for both the product and shipping fees. Step5: The Retailer would then contact the Supplier and pay for the goods at a lower rate while giving them the Customer’s credentials as the shipping address. Step6: Finally the Supplier packs and ships the order directly to Customer. For visual learners, here’s a chart detailing the supply chain to make it a little easier to understand. The customer orders a product from your e-commerce website, which is listed at a profitable margin. You then forward the order details, either manually or automatically, to the supplier, manufacturer or wholesaler. Then the Supplier charges you for the product at a cheaper rate, and ships the product directly to the Customer. The shipment is sent without an invoice and is marked with your logo. Thus, the customer is none the wiser. This is generally known as “Blind Dropshipping.” In conclusion, drop shipping is one of the simplest business models to be implemented in the e-commerce industry. You can theoretically run your own drop shipping business from anywhere in the world. If you have a stable internet connection and a laptop you can potentially start today.
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What is Drop Shipping?

by Cherry Chen
What is Drop Shipping?
Drop shipping is a business model where a Retailer never fulfills orders manually and instead tasks a Supplier to ship products on their behalf. Essentially the Retailer acts as a “middle man,” often listing items on their website at a profitable margin, while purchasing said items from a Supplier at a cheaper rate. What typically happens is a Dropshipper will build an ecommerce site and list all the products which they have access to. Then when they receive a purchase, they would turn around and buy the product, with their own money, and list their customers credentials as a shipping address. Then when the customer receives their order, they would be reimbursed by the Payment Gateway they’ve installed on their website. In other words, it is a newer form of albatross marketing, where you as a Dropshipper will take orders from online customers, buy goods from a Supplier, then have them delivered directly to the Customer without physically touching or managing stock. All requests are satisfied and transported directly from a wholesaler, such as CJ Drop shipping. This enables you the Dropshipper to focus more on building your brand, advertising and driving sales. Thus, drop shipping provides you a way to easily start a business at a relatively low cost. Giving you the ability to scale a company from the ground up with little to no risk. It is entirely possible to build an empire with just one winning product. You do not have to pull a loan and go into debt buying inventory, only to deal with massive over head because the units didn't sell. You don’t have to deal with the cost of renting, management and maintaining a warehouses. In conclusion, Dropshipping is the perfect means for you to start a business on a low budget. Numerous companies started their web-based business with Dropshipping, Amazon, Zappos and Wayfair just to name a few. The ecommerce industry is steadily growing simply because it’s profitable. The only question you should be asking yourself is “how soon can you feasibly start your own business?”
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