Advantages of Having an Online Dropshipping Business
Conventional businesses have been transforming and adapting to this new, more technological era. And even the smallest neighborhood stores now have an online store.
The arrival of ecommerce has been spreading throughout all kinds of businesses, from clothing stores, to gift shops, through travel agencies, among many other companies. Whatever you want to buy, you can shop it online.
In addition, more and more people prefer to shop online rather than having to go to a physical store. Firstly, because it’s saves time, and secondly, because of the fact that the product or service is many times cheaper on the Internet.
Today, one of the fastest growing business models is online dropshipping. A business model that is based on saving costs, time and effort. Selling online has become much easier than ever. There are many advantages surrounding dropshipping business and working with a dropship supplier; but before knowing them, it is important to know what is dropshipping business model and how it really works.
What is dropshipping?
Dropshipping is a business model that is becoming very popular among all online businesses in recent years . It is a distribution model that is based on freeing the entrepreneur from the logistics part of sales, with all the benefits that this entails. It’s a laptop lifestyle business where you will not have to have a space to store large quantities of stock.
Just a laptop with internet connection and some skills.
How does dropshipping work?
When a customer purchases from your online store, you forward the order to your supplier. The dropship supplier is in charge of sending the products directly to the final customer, without you to intervene in the shipping process.
So what should you do from the online store?
Work on the promotion of your online store, establish your margin and perform the necessary actions to publicize your products, to be able to sell them. Then, you will only have to buy the products from the wholesaler whom you have previously selected and he will send it directly to your customers.
This is where online marketing comes into play. A good online marketing skill and strategy is very essential to achieve sales.
Also, you can create your own brand by asking the supplier to include name and logo of the company on the product and packaging.
Let’s discuss the roles in dropshipping business:
Customer: Buys one or more items on your online store. In the whole process the customer doesn’t get to know that you are not actually shipping yourself.
You: When you receive an order. You place the same order to the wholesaler or the dropship supplier. The price which you sell online is usually 2x-3x the price you actually pay to the supplier.
Wholesaler or dropshipper: They are responsible for packing the order with the name of the seller, in addition to receiving the delivery address of the final customer, for making the shipment and all the procedures that this entails.
Five Advantages of doing Dropshipping Business?
This way of working has a lot of advantages compared to a conventional online store.
- Stock management savings: Able to sell without having to stock. This leads to great savings in both time and costs. Thanks to dropshipping it is not necessary for you to own a warehouse to stock all the merchandise before selling it to the final customers.
- Set-up your store in a day: With many platforms available online to create you e-commerce store, Shopify is dropshippers favorite. With its auto made templates and free themes, you can set-up your store in just one hour.
- Millions of product to choose from: So, where do you find the suppliers?Aliexpress is the only name when it comes to dropshipping business. There are over millions of products and thousands of suppliers available on the platform. Some dropshipping providers offer a wide variety of products, and of course, from different categories: home, fashion, beauty, etc. Having several theme stores from different niches is a very good option.
- Huge profit margins: The suppliers prices are so cheap that you can easily sell your products with 3 times the product cost. Although, pricing is subjective to the country you are selling. USA being the best market to target.
- Scalable business: This online business is absolutely scalable considered you know the correct marketing strategies. You need to acquire good marketing skill and have to have a good idea of facebook and google marketing. As this two are the major platforms when it comes to driving traffic to your store.
These are just some of the advantages we just discussed. Many dropshippers have made a fortune out of this business.
It is important to invest time and resources in promoting your online store, just as you would with any other ecommerce. Giving importance to social networks, email marketing campaigns and also your search engine advertising campaigns will make you achieve your goals much sooner.