As an e-Commerce entrepreneur, surely on more than one occasion you have decided to want to eliminate intermediaries; You have looked for alternatives and tried to make the sales on your own but everything has been in vain. Forget what you have been testing so far and focus only on one goal, implement dropshipping in your e-Commerce . This Anglo-Saxon technique for optimizing sales is the solution for small online companies and in this post we present it to you.
Index of contents
What is Dropshipping?
The dropshipping technique consists in that a retailer contacts his main supplier of products, reaching an agreement so that this is the one who distributes it directly to customers.
The main benefit of dropshipping is to eliminate any type of intermediaries and stock management by the merchant, and to be able to earn a profit margin with the agreement reached with the wholesaler.
Steps to apply dropshipping to your online store
The first thing you have to do is create your e-Commerce where products are offered to consumers, and once you get requests from customers you will only have to ask the wholesaler.
Once you place an order with the dropshipper (wholesaler), you will be in charge of managing that there are stocks of the products offered, that the order reaches the customer on time, as well as solving any problems that arise.
On the other hand, the dropshipper is in charge of managing product shipments to customers, responding to invoices issued and product returns.
In this whole process we eliminate the figure of the intermediary (in many cases represented by storage and logistics companies).
One of the disadvantages that you can find with dropshipping is the competition with other retailers and the profit margin of the products. This is where you have to get your good merchant techniques and try to reach an agreement with the dropshipper so that he sells the products at an affordable price for your company.
Tips to keep in mind before creating a dropshipping business
Here are some questions to consider before setting up an online business through dropshipping.
1 # Please note the product
It is important to study the profitability of the product you want to sell, as well as the demand it has among users and the saturation in the market.
2 # Choose an external provider
In the event that we choose an online platform from a supplier, we must investigate not only the final profit margins that we can obtain from the sale, but also how the SEO and the marketing team work, to know how the promotion is going to be designed and managed. of the product. In cases like this, it is advisable to be in direct contact with SEO and try to manage everything hand in hand.
3 # Talk to manufacturers and / or distributors
If possible, the best that can be done is to negotiate directly with manufacturers and official distributors, in this way, we can agree on the percentage of profit that we will take for each item sold.
4 # Choose the best platform
For the architecture of the store it is important not to stay with the first option that is presented to us, but it is advisable to have several options on the table, to see which one best suits our needs, especially, taking into account the amount of articles, images and descriptive texts that we must add. It is also important that the architecture is suitable for different platforms such as tablet, computer and mobile.
The most popular platforms to create an e-Commerce are Magenta or Prestashop.
5 # Wholesalers and suppliers
It is very important to have a good relationship with wholesalers and suppliers, since the success of our company will depend on them. They are responsible for shipping the products, but also for returns.
It is always advisable to work with several providers, in this way, we will always have more options in case one fails.
6 # Important the location of the provider
When calculating or applying our profit margin, you must consider where the supplier is located. This is important to minimize shipping costs and customs if they reside abroad.
7 # Create community
It is important to create a community of users or loyal consumers, to ensure that we will have sales. For this reason, it is important to invest in SEO and Marketing strategies, especially in social networks , to generate visibility and positioning. You can also create a blog to share quality content related to the niche of the store.
8 # Google Shopping
If our online store is starting, it is advisable to use Google Shopping to give us a push and start selling while we improve the positioning of our e-Commerce.
9 # Sell on eBay
Depending on the type of product we offer, we can also try to sell it through eBay, in this way, we will contribute to the positioning of our online store.
10 # Products that we know
It is important that the products we sell are also interesting for us, in this way, we will be able to transmit our personality to users as a competitive advantage.
We know that the world of e-Commerce is very complex, in fact, competition is often unfair in many cases from these wholesalers, so it is important to know who our dropshipper can be and what our profit margin will be.
If even after reading this you still have doubts about how to get the most out of your online store, the Postgraduate course in Multichannel e-Commerce will answer any questions. Learn to manage your e-Commerce in the most efficient way, design an effective marketing strategy and optimize your website. What are you waiting to sign up for? Tell us about your experience if you have tried dropshipping and do not forget to share.
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- E-Commerce and Electronic Commerce Trends 2019
- 7 Strategies to increase the visibility of your e-Commerce
- 5 Sales Strategies for an e-Commerce
Postgraduate in Multichannel e-Commerce
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