There are many steps to having a successful online store, but keep in mind that some of them are basic to get started. Discover the main ones in this article.
Dropshipping: why online stores should know about it
Can you imagine creating an online store without having to spend so much time and money building your own inventory? Adopted by several companies, dropshipping is a business model that allows this ease in logistics. This system is also suitable for those who want to start an Internet business, but have little capital.
What is dropshipping
Let’s start by explaining what dropshipping is. Dropshipping is a system in which the company that sells the product acts as an intermediary between the consumer and the supplier. The store receives the order, handles the payment, does all the fulfillment, and ships the order to the supplier, who handles the preparation and delivery of the items.
This is a solution primarily for small businesses, which do not have the capital or space to store their own stock. In this system you will not have to deal with the steps of selecting, preparing and shipping the product. Although Amazon does not currently support dropshipping, there are companies that can operate in the Marketplace, acting as an intermediary directly with the manufacturer.
Advantages of dropshipping for small businesses
Dropshipping presents several advantages for those who are taking their first steps as Internet entrepreneurs. One of the main ones is the fact that you will not need to invest a large amount to build your inventory.
By delegating responsibility for inventory and shipping to a partner company, you can focus your investment on how to make your online store stand out and develop the marketing of your business. For example, the time that would be used to classify articles can be used to create a newsletter or to produce posts for social networks.
Another advantage is logistics. You can work with suppliers in different regions, countries, and even continents that make it easy for them to deliver to their customers. In addition, without the need to have your own inventory, it is possible to offer a greater variety of products and also test different market niches.
This model also makes it easy to expand your business. If you’ve been performing well and realize it’s time to upsell, you won’t have to deal with inventory and logistics costs, just increase orders or hire new suppliers.
How to adopt the dropshipping system in your business
Before putting dropshipping into practice, it is necessary to plan. That is, create your business model, study how to do the financial management of your virtual store and define what your market niche will be. Then it’s time to find the best suppliers for each product and analyze the prices they charge.
But the price should not be the only factor of choice. It is very important to consider how they meet the demands and how they control stocks and shipments. The time and quality of delivery make a difference in the consumer experience when shopping online. So research the provider’s reputation in the market and whether it’s easy to contact, to avoid future communication or performance issues.
To start selling, select the number of products that will be available in your virtual store based on the number available from the suppliers. Remember to ask them to always send you the updated numbers to ensure that when a purchase is made the product is available for shipment.
After the purchase, the orders are automatically processed by the online store and sent to the partner company, which must send the tracking code to the customer.
In cases of exchange or return, communication with the consumer is your responsibility, but the logistics process remains the responsibility of the provider. Inventory and delivery are internal issues, so all these procedures must be taken into account, since they directly reflect on the reputation of your store.
Common mistakes to avoid when adopting dropshipping
Choice of providers
Giving priority to low prices and not making sure that the provider offers a quality service is a common mistake that can lead to many losses. Forming a partnership to save costs does not work if items are shipped late or if there is no inventory control.
The customer is not interested if the problem is with a subcontracted company or with your store. In this case, the image of your brand is damaged and loses credibility. In addition to choosing a reliable provider, avoid depending on just one, to be prepared in case of any unforeseen events.
Have many products and from different niches
Since you won’t have to deal with inventory, it’s tempting to create a store with a wide variety of products and that covers several niche markets. However, this is a tactic that tends to make it difficult for your company to stand out.
Being considered a benchmark in an area helps you win over and retain a specific audience, while a general store faces much greater competition.
Always ask yourself how to differentiate yourself and why a person would choose your store among all the available ones. By focusing on a specific niche, you can offer the best solutions to your clients.
Freight calculation
One of the determining factors of online purchases is the freight price, so it is important to ensure that the impact on the value to the final consumer is as competitive as possible.
Before concluding a collaboration with a supplier, review all the products that you will make available in your store, mainly specifying the weight and whether they will be imported.
Both the weight and the origin of the product are the elements that can make your transport more expensive, the first because of the packaging and the difficulty of logistics, and the second because of the fees involved in an international shipping process.
Talk to your potential partners and understand their procedure, especially for the cases mentioned above, always trying to improve the competitiveness of your freight price, calculating the value correctly without causing damage to the company or discouraging the purchase by the customer.
Communication failures
It is not because the shipment is not your responsibility that this part should be left out of the communication.
It is essential to have an easily accessible channel for the customer to get in touch. It can be an email, a phone number, a form, a chat or even a corporate WhatsApp number. Consumers need a trusted outlet to ask questions or resolve issues when shopping
The ease of opening a virtual store
With all the current facilities, it is possible to sell on the Internet in an increasingly practical way, and even with reduced costs. The main advice is to find the system that best suits you.
To define your system, pay attention to the financial question, establish a budget and also understand the amount of time that you will be able to invest in your business.
Check out more tips on how to sell online on the Amazon Seller blog, join our Marketplace and become one of our successful sellers.