To launch your own online store, you need investments. Still, there is another way to sell on the Internet. It is dropshipping. And a useful resource TopDawg comes to assistance.
How does a simple online store differ from dropshipping?
To open a full-fledged online store, you need to find suppliers, purchase goods, equip a warehouse, create a system for processing and delivering orders. This requires many resources and investments.
The dropshipping model assumes that the entrepreneur is only engaged in finding buyers and sales, and the supplier takes over the storage and delivery of the goods. An entrepreneur creates an Internet platform, places product cards, attracts customers and sales. The task of a dropshipper is to promote the site, bring customers. He earns a commission on every sale.
Pros and cons of dropshipping
The dropshipping system is suitable for those who are ready to engage in customer acquisition and sales, but do not want to invest their money.
- Fewer risks. The dropshipper does not invest the money in the product, is not engaged in establishing a logistics system.
- You can quickly test a niche. The owner of a regular online store will have to purchase a batch to test the novelty. The dropshipper finds a supplier and immediately adds a product to his website.
- It’s easier to keep up with the trend. Dropshipper can quickly launch sales. When the trend goes away, the dropshipper finds a new popular product and quickly switches to it.
- There is no control. The supplier may delay the shipment, pack the goods poorly, and eventually start saving on quality. If something goes wrong, the dropshipper responds with the reputation before customers.
- Refund at the expense of the dropshipper. There are suppliers who do not accept returns from buyers and do not refund money. If the product did not fit the customer or it came damaged, the dropshipper returns the money.
- Competitors appear quickly. Other dropshippers also start selling goods with high demand. Thus, the entrepreneur has to spend more on advertising to stand out from other stores of the same type.
Dropshipping is quite an interesting way of sales. You can sell a wide variety of goods. The product itself does not have to be on hand, it is enough to request photos from the supplier and place them on the selected site. In business, it is important to think over the delivery system and choose the right supplier. Dropshipping companies` databases can help to make the choice.