What if I say you don’t need to stock inventory nor process orders on your own, while you simply have to relax and sell hundreds of products and earn profits?
Dropshipping model is the answer!
Unlike dropshipping model, any startup will have to rent space, stock products, attract customers, and finally fulfill orders that come in. In most cases business owners consider extra stocking, which, later are kept lying on the shelves. This is the most common approach taken by many eCommerce start-ups, but, can prove to be expensive if not managed well. Though, online retailing is a web based business- the products are stocked by the owner, which is then fulfilled and delivered to customers.
The Dropshipping Model- an ideal solution for any start-up
Dropshipping model is seen to been adopted by more and more eCommerce retailers, that it allows them a kick-start; with low initial cost and risks.
So, what makes it possible?
- No product stocking hassle
- No need to spend in renting/space/warehouse
- Only purchase stock when you receive a sales orderThis model will not only prove to be a cost-saver for a start up, but also, helps them generate maximum profit for their business.
What makes a successful dropshipping model?
Step 1- Research for relevant dropshipping companies
Take ample amount of time and research for relevant suppliers to ensure they frequently deal with products you are planning to sell. To work with experienced companies of the same interest, is foremost thing you need to consider when planning for a successful dropshipping model for your business.
Step 2- Be in frequent touch with them
Next, you need to develop relation with the dropshipping companies you have finalized. Working with a single dropshipping company will help you run your business, however, in case of emergency(e.g. stock issues at the company) having an alternative will help overcome ugly scenarios and ensure your start up business grows successfully.
Step 3- Check on the returns and customer support part with the ones you’ll deal with
There will be some of customers who will change their minds after submitting an order and immediately contact you either for changing the order, or, even worst, request for cancellation. Adopting a dropshipping business model, you won’t have a warehouse where you could address returns. Therefore, ensure your dropshipping company allows a fast turnaround for confirming order changes and cancellations, as, well as, make it clear to your customers, too.
Dropshipping is an option for online business owners who wish to make their lives easier. There may be a few setbacks and minimal risks, but, with wise judgment and proper management; dropshipping can be a smooth-sailing transaction.
This model is slowly and gradually becoming popular among startups. There are few setbacks(stock issue, delay in fulfilling customer’s orders), however, with the above tips and a liking for what you are selling, dropshipping model can be an ideal solution for your as a start-up.