dropshipping business has never been easy as it is nowadays.
Before going into the facts of starting a drop-shipping business, let us first understand what it is drop shipping?.
Dropshipping is the retail type of business where the store that sells the product does not keep it in the stock and purchases from the third party on receipt of an order instructing the third party to ship the product to the customer directly.
Thus the merchant who is selling the product does not need to own an inventory but builds a customer base with product advertisement and purchases them from the distributor, wholesaler or manufacturer in case of an order.
Starting the business of drop shipping
To start a dropshipping business and be a retailer one may have a physical store where some items are displayed but not for sale on the spot or can keep the catalogs and brochures of the products to book an order.
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The latest trend is to start an online portal for the business of drop shipping.
1. In the beginning, one needs to start a portal and tie-up with various manufacturers and wholesalers with the agreement to sell their product on demand by the customer at a price mutually decided.
It is essential to start the business with products that have more demand and a bit high in price as the efforts needed for selling a low priced and the high priced products are the same while doing the online business.
2. Although the supplier or manufacturers handle the order and ship them to your customer, it is best to keep the shipping cost low else the customer might repel.
It is also essential that the product generates interest in the viewer’s mind, and the deal is sealed. It is also preferred to sell something that is not available in the local market of the customer.
3. It is best to do a market competition research before venturing out in the business of dropshipping as multinational giants are already in this retail chain business, and one needs to compete with them.
It is best to research the product demands, the shipping costs, and the profit margins and then add them to the bouquet. Products that are of high demand should always be added to the item list as they have less shelf life and profits are high due to the volume of the business.
4. After building an eCommerce website and selecting the products and securing the suppliers, it is time for customer acquisition, and it can be best done through advertisements in various popular social media.
Search engine optimization is also needed for successful campaigning as it helps to stay on the top of the search list of tempting the customer to visit your website, and you can garner quick business sealing the deal.
5. One need to continually analyze the data and optimize the eCommerce portal to stay updated and know the customer path that enabled them to reach your site so that scaling can be done on the productive road and the ineffective paths are eliminated, and the advertisement costs are channelized accordingly.