What is DropShipping?
Many people are hesitant and worried about opening a store to sell online. The main reason is that the initial costs are high and the frequently mentioned problems that will be encountered in the future cannot be taken into account. Imagine that somebody creates solutions in a way that covers the costs required to start up for you and that will probably solve the problems and surprise needs that may be encountered in the future. It would be easier for you to take the necessary initial step for e-commerce. Dropshipping from the manufacturer to the public offers the solution to many challenging problems in this sense. Making an attempt to sell online does not incur large expenses and any possible problems you may encounter will be resolved by the manufacturer in advance.
Here I will try to share information about what the sale from the factory (manufacturer) to the end user means, its advantages and potential problems. A few tips that will help you get the best efficiency when doing e-commerce with the dropshipping method will be included in this article.
Selling from the manufacturer to your customers, in other words, selling from the warehouse or without stock, is an e-commerce method where you can sell products on the internet without having to stock them at a certain point. You agree with the wholesaler of your products and ensure that the products are stored, you send the orders and address information you receive to the wholesaler, and your wholesaler will handle the packaging and delivery of the product on your behalf. In this type of sales method, the cost of storing your products and other expenses are borne by your manufacturer or wholesaler.
Of course, when you dropshipping, your customers do not know that you are using the dropshipping method. As long as you stay in agreement with you and the company that you sell dropshipping products, customers will continue to reach the products they buy.
The advantages of DropShipping
There are many advantages to using the dropshipping method of sales. I have tried to list these advantages in the information below.
You can do business with little capital: Selling without stock is the easiest and less capitalized way to start selling online. You will continue to offer products to your customers and sell without stock, without the expense of storing the products you sell.
Fast, Easy and High Return: Establishing a good e-commerce site with little capital and keeping it active, waiting for success to be successful requires serious work. Starting out without thinking about the possible problems you will encounter and the initial investment amount allows you to be more free. So it will be easier for you to pay attention to customer service and marketing issues.
Easy to Manage with Less Effort: You do not spare time for your physical needs such as stock keeping in your warehouse, order preparation and shipping operations are met by the company you are doing Dropshipping. You can access your e-commerce site from anywhere on the internet and easily manage your internet sales.
Reliable Environment: The sale of stockless products may be very reliable to you and you may have some reservations. but the dropshipping model is very reliable. Any business, small or large, is trying to deliver its products to their customers using the dropshipping method.
4 Possible Problems in Dropshipping
Like all trading models, dropshipping has its disadvantages. With sufficient knowledge, timely intervention and good planning, most of the problems that may occur can be eliminated. With the experience and systematic working principle, your success in dropshipping, dropshipping, dropshipping and your business on the internet environment depends on the precautions you can take against them, to be aware of some of the negative situations listed below.
- An abundance of dropshippers
The products to be offered as stockless sales on the Internet are in the product range where there is a lot of competition due to the high number of people doing this job. Due to the fact that the competition is so vigorous, you may need to reduce the price of the products more than necessary and even the low profit margins you will earn and balance the income and expenses accordingly.
Rather than being stuck with issues such as pricing, discounts, and special offers, making more detailed explanations of the products and introducing your service to more people will start to offer you advantages in drop-in sales.
- Out of Stock Items
In fact, I do not think that this problem will be too much trouble when you take precautions, the easiest way to overcome this situation is to work with a few wholesalers. So do not put all the eggs in one basket. Selling out of stock with a single wholesaler who has no choice can mean that we may encounter problems such as running out of products from time to time. Working with a few wholesalers rather than selling them will eliminate this problem. The important thing is that the products they want are out of stock, you can continue to sell them without the problem.
3. The Difficulty Of Selling Products From The Picture
The most difficult part of e-commerce is trying to sell an intangible product to the buyer with its image on the site. It is really a very limited situation in terms of marketing. In order to sell the product, you must provide all the information the customer needs about the product in detail. In order to do this, you need to know the products you sell closely in order to answer the questions about the product. For this, you can research and detail the information you receive from the manufacturer and wholesaler, or you can buy some products yourself, examine the products and get information about the product with experience and experience by thinking about the possible questions. After you have examined and tried these products, you can sell them as second-hand or repackaged products.
- Dealing with third parties while doing e-commerce
Even the best of businesses that sell dropshipping sometimes make mistakes, but businesses that are new to dropshipping will make more mistakes. The characteristics of the wholesaler you will work with are very important in terms of drop-off sales. Additional requirements may arise for some reasons, and when these fail to solve, you may encounter serious losses. The most important of these losses will be your reputation.
It may be the case that the sold product is sent to your customer by replacing it with a new one or exchanged with another product. If your wholesaler does not agree to cover this cost, the entire liability is yours. Failure to cover your expense will cause irreparable damage to your brand, and you may encounter a problem such as not being able to sell to that customer again.
In order for such problems that may occur, not to become long-term and turn into negative consequences, you need to find solutions from the beginning. Every problem that cannot be solved is reflected as a negative point and becomes an important issue that cannot be ignored when it comes to brand reputation.
Dropshipping without stock is not going to make things so easy in e-commerce. As you increase your site, service quality and customer service quality, just like the path followed by other successful e-commerce sites, you can easily get out of all these negativities you will encounter in your e-commerce activity.
Drop shipping allows you to experience only the e-commerce environment and easily implement your initiative. Again, like you, like other internet traders, your business is shaped day by day with some strategies and analyzes such as planning and managing your business and e-commerce management. In order to achieve success, you must manage your brand with a good strategy and plan to add value to it.