Dropshipping is one of the methods that most people prefer to use when it comes to starting first business. The reason is very simple as dropshipping do not require you to spend a sum of money on products without any guarantee that those products will able to be sold. How dropshipping works is that you and your supplier come into terms or agreement on how the relationship is in selling products. Your supplier who owns an inventory of products that you intend to sell, will ship out the products on your behalf whenever you have orders. You simply earn by profiting from the difference between the prices of goods that you are selling versus the prices of goods that you are getting from your supplier.
As mentioned, dropshipping is actually an arrangement between a business and the distributor or manufacturer of a product the business wishes to sell in which the latter will be responsible in shipping out goods to the business’ customers. So, what role do you really play in dropshipping? Well, your main task is to promote and market your products while servicing your customers. Do remember that you as a dropshipper do not have to carry or stock up products. In marketing your products, the most common platform is social media advertisers like Facebook advertising, Instagram advertising and SEO. When you get an order from your customer, you will then send the order to your dropship supplier, including your customer’s delivery address so that your supplier can send the products directly to your customers. Do take note that your supplier will not include any of their information. This is how dropshipping arrangement works, in which you will be the sender in the eye of your customers.
There are a number common methods used by Malaysians in dropshipping. For example, you can choose to dropship in local market places like Shopee and Lazada; and international platforms like eBay and Amazon. Other than that, you can also choose to dropship on Instagram or Facebook. You may get dropship suppliers locally or from common supplier like AliExpress. Lastly is dropshipping on a branded e-commerce website, in which you may also get dropship suppliers locally or from common supplier like AliExpress. The recommended one would be the last method as you do not own the marketplaces you sell on or platforms like Facebook or Instagram, which can make sudden changes that wipe out your income without notice in advance.
You may be wondering what are the great benefits in the model or scheme of dropshipping. One of the advantages of dropshipping was actually mentioned earlier, whereby you do not have to spend money on the products and keep an inventory. All you have to do is market your products by uploading pictures and start selling. In other words, you do not have to invest any money upfront. Without having the need to keep an inventory also helps in elimination of warehouse cost. Another advantage in droshipping is that you can test and find the winning products since the overall cost will not fluctuate and fixed at certain rate. This means that you can test as many products as you want and see which one will give a higher or best return.
Dropshipping sounds simple enough and relatively easy to handle but why many of you are not successful in making money through this business model? One of the reasons is because you may not be treating dropshipping like a real business. You have to know that dropshipping only takes care of one part of the whole business. Other parts are still the same like any other businesses. In order to be successful, you will still be required to optimize your marketing and customer service as well as your whole operating system. If you do not take it seriously, you will likely fail in dropship business. Another reason if you are not successful is because of the lack of knowledge in digital marketing, in which you may not be investing sufficient time and money in mastering such skill. Remember that good online marketing can helps your product to reach more customers. This in turn gives higher chance of making sales on your products. On the other hand, poor marketing will most likely results in failure. It will not guarantee you any income by just creating a website and waiting for customers to come to you. Therefore, mastering marketing skill like SEO is highly beneficial as your customers will be able to find you or your products through big search engines such as Google and Yahoo. Besides SEO, it is also recommended to be familiar with Facebook advertising. It is consider a good marketing channel to keep customers coming in. One of the biggest mistakes observed in many is using the same photos as other dropshippers. Bear in mind that these generic photos will not make your products stand out and customers will notice and reach out to competitors for better offer. As such, you are advised to be different by putting a little more effort in generating more special photos to attract your customers. Differentiate yourself from your competitors.
It is important to create successful dropshipping business in order to excel in your business. Prior to starting your business through dropshipping, do some homework in regards to how much work you need, sell only product that you are familiar with or have passion in and picking the right supplier. Working with the right supplier is the main factor in determining the success of your business. Things to consider include whether they are local or not, can send products on time, what’s the profit margin like and the support they are able to provide in the event of wrong, faulty or damage product. Before starting your business, it is also very important in creating a brand. This step is often overlooked but it is deemed as one crucial step and allows building your business in a long run. So, it is advisable to spend some time in creation of a brand thatyour customers can identify with. Be different and unique. Your marketing skill must be updated and must not be neglected as well in order to attract more customers. Once you are well prepared and started your business, you must remember to take action daily. What does it mean? It simply means that you should spend more time per day to keep your business running and don’t give excuses to leave it as it is without attending to your business or customers.