You can get started with dropshipping in e-Commerce without investing a lot of money. Traditional retailers have to buy inventory and store it to sell it. However, dropshipping allows orders to be fulfilled directly from wholesalers or manufacturers. The dropshipper handles inventory, logistics, and delivery for you. The only responsibility you have is marketing and selling your products. As soon as you decide to dropship, you need to develop a strategy. The following blog shares 4 common dropshipping strategies.
1. Invest in Marketing and SEO
You are in a competitive environment when dropshipping because others are selling the same products as you. It's easy to assume that setting up dropshipping for your e-Commerce will give you an instant profit. Instead, you should put all the time you save on shipping and fulfilment into marketing and SEO. These elements will drive traffic to your e-Commerce and generate sales. Also, you should prioritise quality customer service and a good buying experience.
2. Identify a Backup Supplier
The problem with relying on one supplier without a backup may cause logistical issues. Are you prepared if they increase the prices or decide not to work with you? Or they may go out of business. Alternatively, in the less dramatic scenario, they may be out of stock on a product and not know when it will be back in stock. Make sure you've got a backup supplier in case your first choice doesn't work out for an order.
3. Test Your Supplier
Whenever you begin working with a new supplier, placing test orders is an excellent way to verify their capabilities. Upon receiving the order, ensure everything is top-of-the-line, including the packaging, shipment time, and quality. Therefore, it's useful to place test orders regularly. The reason is that fulfilment is significant to any e-Commerce, and you want to catch any quality issues before they become serious.
4. Consider Flat-Rate Shipping
Shipment rates can be a hassle, even if you ship everything from one location. You may encounter difficulties if you ship from multiple warehouses or dropships from various suppliers. BObserving past orders allows you to calculate a flat shipping or tiered rate based on the cart value. As a result, you'll come out ahead, and if your flat rate is set correctly, shipping costs will even out over time. Additionally, flat-rate and free shipping have proved to increase conversion rates as shipping costs are a major reason customers abandon their shopping carts. No confusion or "hidden" fees may appear during checkout since flat shipping fees are fixed.
Final Thoughts
Make sure you pick a profitable niche for dropshipping.
Your products will likely be available from other e-Commerce unless you're dropshipping private-label goods. Widely available commodities tend to be highly competitive, but niche businesses can reduce the levels of competition. A niche market consists of segments within a larger market that differ primarily in their needs, preferences, identities, or interests. It is good to narrow down your audience, but it isn't as easy as it sounds. If your product idea is validated and there is a niche audience for it, you can differentiate your e-Commerce in the crowded marketplace.
You will enjoy immense growth opportunities if you partner with the right service provider. Get a better start with Zooloo. Our team is happy to assist you with your journey towards digital transformation. Please contact us at sales@zooloo.asia.
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