How to be successful in drop-shipping?
Having a team or start-up capital is not crucial to begin your business. Drop-shipping is one of the most modern and popular models of business, which opens doors to the business.
Drop shippers don’t have to purchase goods in large quantities and think about storing them. But their main responsibility is promoting, advertising and accepting orders. The main part of their profit is formed because of the wholesale and retail cost differences. But sometimes, they take percentages from manufacturers and add their own expenses, too.
This model of business appeared in the US at the beginning of the 20th century. The owners of large enterprises found local entrepreneurs who knew other bigger businessmen. Local entrepreneurs found customers and the owners of enterprises sent the product to final buyers.
After the development of Amazon, AliExpress, and other online stores, drop-shipping reached another level of popularity. You should follow several steps to become a successful drop shipper.
1. Select products to sell.
You should select the niche that you are interested in. If you choose a niche that you are not passionate about, then you may be discouraged, because it may take a while to scale your business. Here are some factors that should be considered while selecting products to sell.
- Low shipping costs
Even if the shipping is the responsibility of the supplier, it will affect the final cost of the product. Another advantage is that inexpensive delivery allows offering free shipment.
- Choose which is not available in local markets
Try to sell products that can’t be picked up from local markets. This makes it even more attractive for your customers.
- Easiness of private labeling.
It will be easier to create your own base of customers if you have your own brand. Try to control the quality of your products. Choose products that are easy to rebrand and sell. Find suitable packages and customize the product.
- Check the trends.
Use online tools to check the trends among people. There are several tools, but the most effective and free is Google trends. Look at the number of searches about a product that you are planning to sell.
2. Learn your competitors
Don’t forget that you are going to compete with giants that have experience and professionals in this sphere. So, try to learn about their products. Most people do mistakes and choose goods that giants don’t have. But don’t forget, maybe they are not selling because there is no demand for that product.
But if you think that particular product can bring you profit. Then learn about that good. Consider shipping costs, manufacturing, and other possible issues.
3. Find a trusty supplier
This can be a not easy job if you are not experienced and don’t have relations with manufacturers. But you can search for suppliers on the internet.
Alibaba, AliExpress, or other platforms can’t be the solution. There are thousands of resellers and middlemen. There is a chance to find a real manufacturer, but it is too small. Most middlemen present themselves as suppliers, so don’t forget to ask for proof.
However, there are hundreds of risks that you can have if you do that by yourself. Using the service of professional sourcing agents can be the best solution. They help you to avoid possible issues.
4. Choose or build your own platform.
There are several choices where you can sell your products.
- Social media
It is easy to open a page. You can promote the page and find more customers. Instagram, Facebook, or others are the easiest way of talking with customers. But there is no payment service. So, customers should use other apps to pay for the product. And there is a risk of losing customers in case of a block of pages.
Building your own online store is a good idea if you are sure about the product. In the beginning, it can be enough to have own web page and using services of building free web pages.
5. Quality inspection
If you are located in another country, then someone should conduct quality inspections of your product. It is better to use the services of professionals.
Import Secrets is the company that assists your business. Our agents can help to import any kind of product from China. We offer services like:
- Product sourcing
- Product negotiation
- Sample delivery
- Shipping organization
- Customized product development
- Customized packaging