Drop Shipping – E-Commerce Business Ideas
Definition of Drop Shipping
Drop shipping is an online retail business that allows almost anyone to create an e-commerce store with little to no money and does not require huge warehouse space. In fact, drop shipping is a very easy way to start a very profitable business. Basically, its an e-commerce store with a supply chain management method in which the retailer or owner of the business does not keep any inventory or stock.
The way it works is when the online store sells an item on their website it gets shipped directly to the customer from the inventory facility or manufacturer. This allows the store to make a profit without ever having to see or touch the products that they sell. This is beneficial as nothing is invested in terms of a warehouse or inventory storage.
What Products Should You Sell?
A drop shipping company is a simple business to open up and run. The first thing you need to decide on when creating a drop shipping company is the products that you want to sell. The products need to be something that many people will be interested in buying. Also, the items need to have a good profit margin and are not just seasonal. For example, Christmas trees will only have a short burst of sales during the festive season. Hence, finding the correct products that follow these rules will help increase your chances in creating a successful drop shipping company.
Finding a Trustworthy Supplier
In order to create a drop shipping company, you need to find a great supplier for all the products. There are many suppliers available, but finding a supplier that offers drop shipping will help your business. In addition, a supplier that has a low service fee will provide you the added advantage of higher revenue. Besides, these fast shipping is a must coupled with quality products.
Quality products will reduce returns and increase customer retention. Overall, having a trustworthy supplier will ensure that you have the least stress possible and will help scale your business effortlessly.
How Do You Sell?
Having a place to sell your products is one of the most important things in drop shipping. The platform you sell on can have a huge effect on the success of your business. There are many well-established website platforms. When selling your products on a platform that is already established you are able to easily create an account and attract customers. We can help set your drop -shipping website and get your small business website development off the ground.
- Low Cost To Start
- The main reason why drop shipping is so beneficial is that it has a very low cost to start and get going. There is no need to invest tons of money in inventory that you aren’t sure will sell. Instead, you just need to purchase it straight from the supplier and ship it to the buyer as soon as they pay you for it. Not only does drop shipping eliminate the need to invest in inventory but it also eliminates the need for a warehouse. In fact, a drop shipping company can be run from pretty much anywhere that has internet.
- Less Stressful – Having a drop shipping company rather than a traditional store is that they are less stressful. You don’t need to worry about packing and shipping out the orders as a traditional online store would. In addition to that, with a drop shipping company, you don’t need to track inventory or manage how much inventory you have. Lastly, since drop shipping companies usually have little money invested in them it isn’t as stressful if it doesn’t work out.
- Effortless Scaling – It’s easy to scale. In a regular e-commerce business where you manage and ship everything yourself, scaling can be a challenge. A drop shipping company places the burden on the supplier doing all the work. The suppliers will package and ship everything. Also, if you want to add more products to your store you just find a new supplier. This means that if you scale your drop shipping business then the workload on you won’t get much bigger which is why drop shipping companies are so beneficial.
- Low-Profit Margins – One of the biggest downfalls to having a drop shipping business is that the profit margins are usually low. Since the drop shipping business is so easy to get into, there are many other people that do the same thing meaning that they have the same products as you.
- Issues With Inventory – Even though drop shipping companies don’t need to have their own inventory there could still be issues with inventory. This is because you don’t keep track of what the drop shipping suppliers have in stock. This could cause you to sell merchandise that you or your suppliers don’t have causing the delivery to be delayed. Also, not being able to get the purchased item to the buyer creates a higher chance of the buyer canceling and not coming back as a return customer. This issue can be solved if you communicated with the supplier and are aware of the stock, and back-order supply.
- Issues With Suppliers – If you have a bad supplier you can encounter many issues and mistakes that you have to take the blame for. One issue suppliers can make is that they send the incorrect item to the buyer. Also, another issue is poorly packaged products thus making your business brand look bad. Other issues can mean poor quality products. All these issues with suppliers can be harmful to your reputation, hence why it is important to check what you decide to sell.
Drop Shipping Summary
Overall, drop shipping is a very easy way to set up but it also comes with some drawbacks. Drop shipping is an online retail business that allows you to run it with no stored inventory. When a consumer orders something on your website then you order it through a supplier at a cheaper cost directly to the buyer. This is beneficial because you need very little money to start it, it isn’t as stressful as a traditional business, and it is easier to scale. The downsides to drop shipping is that it has low-profit margins, issues with inventory and complexities with suppliers. If done correctly a drop shipping company can become very successful and generate a lot of income. I believe that anyone that wants to open an e-commerce business should attempt to start a drop shipping company because they have very little risk if all goes downhill.
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Drop Shipping for Small Businesses
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Professional Website Development for Drop Shipping
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Effective web design for Drop Shipping offered nationally
Besides providing SEO and online marketing to local businesses we also provide such services to small businesses in other states. For example, local cities include Seattle, Federal Way, Puget Sound, Issaquah, Kirkland, Lakewood, WA, Monroe, Olympia, Tacoma and Bellingham, WA.
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More Blog Posts on Web Design, Online Marketing, SEO and related areas:
Google Panel | Google Adwords | Google Trends | Rich Snippets | | Internet Companies | HTTPS | | E-Commerce Website Developers | | 20 Years of Google | AI | Google Algorithms | Phishing & Compromising websites | Business Ranking in Seattle | Smart Homes | Ruby on Rails | Web Design History | Death of Google Plus | 5G | Micro-animations & Micro-interactions | Drop shipping