How to Start a Drop Shipping Business - For those of you who want to start an online business but feel not yet have enough capital to stand alone, then #Drop ship and Reseller business is the most fitting solution. Drop ship Business is an online product sales system, where the seller does not need to stock goods or have their own products. In this system, the seller cooperates with suppliers or vendors who offer Drop ship cooperation to sell goods. When the seller gets an order, then he just pass the order to the distributor of the product owner.
In the Drop ship system, the seller just knows it's OK. They do not participate in the delivery of goods to the buyer because it is done by the supplier. The more fun, on the packaging / pack of goods sent to the buyer later, it will be listed that this product is sent by the seller / retailer, as if the seller of this Drop ship is the original seller.
Just like other business systems, Dropship system also has its own advantages and disadvantages. This is what we will discuss further Start a Drop Shipping Business.
How to Start a Drop Shipping Business - Advantages of Drop shipping Systems
1. Without Big Capital
Especially for beginners, capital that crew is often a classic problem. Well, this Dropship system is guaranteed very helpful for beginners who want to sell online with limited capital. Sellers can sell products online without storing stock first and do not incur operational costs such as salary, electricity and employees. Sales can also be done easily through social media sites such as Twitter, Facebook and Instagram, through free blogs, through WA and trading forums.
2. Super Practical
Drop shipper will not be bothered with the affairs of product packing and shipping process as all has been done by the supplier. You only do follow up order from buyer to supplier only.
3. Can Be Done From Anywhere
As long as we have gadgets and connect with internet connection, then we can do Dropship business easily.
How to Start a Drop Shipping Business - Lack of Drop ship Business
1. Smaller Profits
Inside the drop shipper business usually the profit margin is taken smaller. The seller may actually raise the price higher, but if competitors are quite a lot while the products we sell the same, then it is tantamount to suicide. Therefore, the average Drop shipper chooses not to set prices higher than the supplier's price.
2. Freight Stock Info Often No Up Date
Drop shipper certainly does not know the stock of goods up to date because the real stock is only known by the supplier / vendor. Often also suppliers / vendors late to update the stock on their site.
3. We Are Not Really Knowing Product Quality
When the buyer asks for details about the product to buy, Drop shipper is often confused to answer for not having the product and lack of understanding. The fact is that many Drop shipper who do not understand the specifications of products sold and only focus on marketing. Whereas when Drop shipper does not seem to understand the product when the buyer asked, then this can reduce its credibility.
When purchased product does not match, delivery is late or packing is messy, then Drop shipper must be ready to accept complain from buyer. Though of course the Drop shipper has no control over the product and the packing process.
Tips on Choosing a Drop shipper Supplier
If you want to succeed in this Dropship business, then you should really do a good selection in choosing a supplier / vendor. Basically, a business model like this will only work well if the supplier / vendor can provide good service to its drop shipper.
1. Take Products from First Hand (Wholesale / Wholesale)
When you take the product from the first hand (wholesale / wholesale), then you will get the best price or profit a tolerable. These wholesale traders will usually choose to earn for a little, but many items can be sold.
2. Supplier Has Credibility
Choose a vendor / supplier that already has a good system that makes it easier for you to work together and market the product. This supplier usually has a simple ordering and confirmation system, and can make ordering, packing and shipping process with minimal complaints.
3. Fast Response
Supplier can be contacted easily and reply your message actively and friendly. But often one vendor has many suppliers, so Drop shipper also be patient when in some times the supplier is a bit slow in replying to your message.
How To Start A Drop shipper Business
1. Looking for Distributors of Cooperative Products
How to find it? You may do research through social media, Google, marketplace, forum or advice from friends. Lots of online stores that now provide special services for registration Drop shipper.
2. Contact Distributor
If the distributor does not provide registration service, please contact the distributor directly. By contacting distributors, you can also build good communication as a Drop shipper so that in the future your business can run and grow well.
If you have the product and found the distributor that you think is best, your next task is to throw the product into the market. As a prefix, just choose social media (Facebook, Twitter and Instagram), instant messaging (WhatsApp, Line, BBM) and marketplace as your marketing place. If you are diligent and focused in building this business, then I am sure you will definitely succeed with this Dropship business.
Then what about Reseller business? At a glance Reseller looks similar to Dropship. But the system, both are much different. In the Dropship business you are not required to stock the goods, while in the Reseller business, the supplier / vendor requires you to purchase products with a certain minimum amount to obtain the reseller price for a reasonable profit margin.
Profit is indeed Reseller business tends to give more profit compared to Dropship business. Here the seller will also hold the product physically so as to be able to present the product appropriately to the buyer according to the product specification. The seller will also perform their own packing process and make their own shipping process.
Better Where, Dropship or Reseller? Both are as good as I am. It all depends on you more comfortable with which system. If you are afraid of unsold goods, then a secure business like Dropship will give you convenience. But if you are confident with the product you are selling, you want to know the details of the product you have and also want a decent profit, then Reseller is the choice.