Dropshipping is a business model that allows suppliers to ship products directly to your costumers. Retailers that take advantage of dropshipping business opportunities are better equipped to sell products without having to assume such inventory risk. You, as an online retailer that drop ships inventory, would only have to market products to your customers and keep track of your sales. When an order comes in, the retailers forward the order to their drop ship supplier. Then, the supplier goes on to ship the purchased product directly to the retailer`s customer.
Things to Consider When Looking For Good Drop Ship Supplier
Multiple factors come into play when pursuing the right drop shipping business opportunities. Such factors may determine what you can end up with: either a great source of extra income or a mere frustration and waste of your time. Factors may include location, reliability, selection of products, and how fast the supplier can ship to your customers.
Location is key when looking for great drop shipping business opportunities
Retailers may find drop shipping business opportunities to be endless. Although there is a lot of suppliers to choose from, the location of the supplier is very important when choosing your drop ship supplier. Many suppliers, come from different places throughout the world. It goes without saying that location is crucial because your customer orders ship from the supplier`s warehouse.
Nobody wants to deal with frustrated customers, asking about why their packages still have not shipped. It is your responsibility to find a reliable distributor, who understands the fact that this is a time-sensitive business. If your supplier has more than one warehouse across the United States, this is a great sign. Having more than one location to ship from will help your customers receive their packages sooner, wherever they may order your products from.
Should You Take On Suppliers That Come From Overseas?
In most cases, yes… However, some drop ship suppliers such as AliExpress come from China. If your online store serves the United States it may not be a good idea to rely on AliExpress for your drop shipping. The reason is simple: your potential customers will have to wait several weeks before they can get their packages.
Consider this scenario: Your customer orders a Christmas gift from your online store with reasonable expectations to receive it just in time for the holidays. You’re excited to fill the first of your many orders and quickly forward it to AliExpress. They pick, pack, and ship it to your customer.
One little problem: you and millions of others have ordered billions of packages coming in from China. You soon face unexpected delays since the package is coming in from the other side of the world. What should have been a simple order now gets stuck in transit just in time to miss the holidays!
You may have a hard time giving your customers an accurate estimated shipping time. As soon as your customers realize they will not be able to receive the Christmas gifts they ordered for their loved ones before the holiday, they are likely to cancel their order or demand a return. Your customers will always remember their experience with you and may never order from your online store again.
Still, some dropship suppliers may be reliable even if they’re from overseas. Before you decide on your suppliers, you should stop to make sure they can offer you good shipping time.
Selection of Products
Before you select a drop shipping company, prepare a clear idea in the possible categories you may want to sell. Some suppliers will focus on certain categories and will only have products from that category in their warehouse.
Similarly, certain retailers turn their online stores in specific niche store. In most cases, this proves to be more successful than trying to sell whatever they can get your hands on. If you are selling products from a narrow and focused category, you will get to market your products to a niche audience. By choosing products, which will appeal to your specific audience, you will increase your chances of making sales.
Whether you are a seasoned seller or a beginner, you should consider selling nature-friendly, organic food products. This category lends itself very well to finding great niche products. With this category, you are likely to enjoy high re-order rates and low return rates!
Selecting the Right Marketplace to Sell Matters
Once you find your drop ship supplier, you should choose a marketplace to start selling online. Many marketplaces can provide you with great drop shipping business opportunities such as Amazon, eBay, and Walmart. You also have the freedom to create your own online store, where you can sell with more freedom and less regulation. However, you may have to spend more when it comes to web design and marketing as you will not have access to millions of online shoppers the other platforms have.
On the other hand, opening your own online store with a website like Shopify gives you a chance to create your own brand. You can start running your own niche store. Moreover, you can create your own content such as blog posts, “about us page” and more.
Depending on how ambitious you are, you can optimize your website`s content for the search engines. Seach Engine Optimization will allow your content to appear in first pages of major search engines. Undoubtedly, this will bring a lot of traffic to your website. Most people, including me, argue that SEO proves to be more effective than marketing.
There is No Right Answer
After all, this really comes down to what you have in mind. If you want to avoid marketing costs and SEO, you can sell various products on e-commerce marketplaces such as Amazon, eBay, Walmart etc. On the other hand, if you want a create your own niche store with your own brand, opening your own online store might be the option for you.
Do You Need to Obtain Resale Certificate?
Depending on where you’re located and the destination of the shipment, you may have to collect sales taxes from your customer. In order to do be able to collect sales taxes, you will need to apply for a resale certificate from your state. To find out how you can obtain a resale certificate from the website of your state tax department. If you operate from the U.S. you may not be able to open an account with a legitimate drop ship supplier until you have your resale certificate.
Imagining the Future of Drop Shipping Business Opportunities
Even in past 12 months, search interest in “dropshipping” keyword has been rising significantly. As more people shop online, online retailers benefit from a greater market share. In turn, retailers are learning that establishing relationships with drop ship companies is a great way to manage their own inventory risk. Therefore, it is easy to assume that the future of drop shipping business seems bright. And, drop ship companies are getting better and more reliable to provide the best service for their retailer customers.
Learn More about the opportunities that we have to offer.