The e-commerce are a great way to reach a very wide audience, potentially much more than a physical store. But it is not easy or cheap for that. Many people believe that it is to have a website and sell like churros, without Buy Engineers Mailing Lists realizing the great effort that must be put to bring people to the website. Other people do not realize the cost of storing the product. However, there is a way to have an online store without having to have the product yourself. Today I’ll explain what dropshipping is .
Essentially, a dropshipping service is an ecommerce in which once the customer orders and pays a product, you transfer the order to a supplier (who can be a wholesaler or a small store), the dropshipper, which is responsible for both the storage as of the shipment. In this way, you would be an intermediary between the buyer and supplier who, in reality, will never have the product in their hands.
What are the advantages of dropshipping?
Disadvantages of dropshipping
Nothing in this life is perfect, and neither is this model. The main one is the lack of control you have over a good part of the sales process. If your supplier sends a defective product or mismanages the shipment, it is most likely that in the eyes of the buyer, it is you who is responsible, affecting your image despite not being the culprit of your bad experience.
It can also be problematic (in case of having more than one provider), that you find that the same order has products from different suppliers, which will imply the possibility that the sending of these two different packages arrive at different times, something that your client may find it an inconvenience and, on the other hand, your reputation will not be as good for a not so good experience.
General tips for a dropshipping
In the next entry we will go into more detail on the strategies to follow and how to organize a good dropshipping, but if you need to know more urgently, here are some basic steps:
- Gather all the information from your suppliers: make sure they are serious and that they work properly.
- Shipping terms: make sure that your suppliers can make shipments within the promised period and includes the obligation to fulfill them in a contractual clause.
- Report your intermediary status: a failure of your provider may affect your image. Inform the customer that you are an intermediary.
- Negotiate the conditions of purchase: do not accept agreements that include minimum orders or quotas to be able to access the complete catalog.
In the next posts we will go deeper into the world of dropshipping, I hope this has served to make you a global idea of what it is and how it works.