Dropshipping is a method for the retail of items in which the retailer acts as a middle man. The store does not keeps stocks of products, but transfers the orders of their customers to a wholesaler, the manufacturer of the product or another retailer and the order is shipped directly to the customer from them.
Many e-commerce giants in today’s world started with dropshipping. The best example is Amazon. Dropshipping is better for you than other businesses if you want to enter the e-commerce field in your future. But, there are many facts about dropshipping that people generally do not know about. In this article, we will discuss some of these unknown facts about dropshipping and how these may affect your dropshipping business.
Unknown Facts about Dropshipping
- The common belief of some people is that dropshipping stores only sell cheap or low-quality products or products that they want to sell in bulk. But this idea is wrong. In fact, you can sell anything you want. You can sell items such as unique or expensive items and imported products on your dropshipping stores as long as there are customers who want to buy them. This relies only upon your preferences and the customers’ need. Many businesses and companies nowadays allow dropshipping stores to sell their products.
- But, another thing to keep in mind is that not every company or store you approach will allow you to sell their products on your dropshipping store. Many of these have tie-ups with e-commerce websites or other dropshipping stores and may be unwilling to give you a chance. This is one of the biggest problems about dropshipping that it is hard to get suppliers for your store. But don’t lose hope. If you put enough effort and have patience, you will find someone who will give you a chance.
- Many stores will break your relationship with them if their products do not generate enough sales in your store. Like in any other business, it will take time to gain the trust of your suppliers and to maintain a good relationship with them.
- People think that they need extreme coding skills and abilities or that they will need to hire a professional developer for the creation of their dropshipping website. But this is wrong. There are many platforms available that will let you create your own online store with no requirement of tech. Some of the famous ones are Shopify, BigCommerce, and Wix. The creation of a good website is the first step in starting your dropshipping business.
- You should use the power of social media for advertising your products. The proper advertising of your products will increase the number of your customers many folds.
- You should never make dropshipping your main work. Open a dropshipping store as a side business. In the beginning, you will only earn small amounts of money as the margin of profit in this field is very low. Even if your online store has become a very big one, it is not a guarantee that it will generate large revenues forever. So just stick to your primary work and let the dropshipping store be your side-business which you can use to either gain some experience or to earn a few extra bucks.
- The competition in the dropshipping business has been increased significantly in the past few years. Therefore, it is not an easy task to establish your own dropshipping store among a crowd of them who have already established themselves. The key is to provide your customers with good support service and good quality products and to answer every need of your customers.
- You will need to do a lot of research on products that will be of a greater profit for you and which are in demand at the time. In other words, you need to study the demand patterns of your customers. For example, in current times, the products that are in huge demand are protective face masks and hand gloves, hand sanitizers, and more.
- You will need to analyze the statistics of your customers by using tools such as Google Analytics. It will tell you about the locations with the highest number of your customers, the average age group of your customers, the percentage of male and female customers on your store. It will also give you details about which of your products are getting the highest engagement and how many people visit your website each day. You need to use this knowledge to improve your store.
- You should be able to provide good customer service to your customers otherwise, you may lose them. Some of the areas in which customers may require support are the Delivery status of their product/s, re-availability of goods, shipment details of their areas, etc.
The bottom line is that the dropshipping business may prove useful to you in terms of experience and revenues. But you must not fully rely on it as a full-time business. The above facts are either unknown to people or they ignore it. But these facts must be considered if you have or are planning to open your own dropshipping store. Have a little patience and consistency, and your dropshipping online store will flourish and grow and reach new heights.