Generally speaking, start-ups require a tremendous amount of work with very little by way of assistance. The world of business is tough, getting increasingly competitive in the online space – so much so that many launch their own crowdfunding campaigns. So, savvy entrepreneurs look for streamlined methods of making money while cutting costs.
Those in the realms of eCommerce are now finding that a revolutionary new method of fulfilling product orders ticks the boxes of cutting costs while generating income: dropshipping. Deserting the traditional, costly method of bulk-buying, storing, and fulfilling, dropshipping has become a clear-cut way to help start-ups break into the market.
The immediate benefits of this new-age way of selling and supplying products is that shipping and storage costs are significantly reduced, and often removed altogether. Additionally, those who commit to a dropshipping model see even greater, business-enhancing benefits down the line, including time-saving benefits and flexibility in the products that they sell.
Here’s what you need to know about the revolutionary model of dropshipping and how it could help your new startup business. Once you understand the benefits and efficiency of this model, you will no doubt be eager to incorporate it into your business and start dropshipping.
What Is Dropshipping and How Does It Work?
The global eCommerce market is on the rise, ticking up by a tremendous amount last year in India alone (17 percent), but with so much competition, newcomers need to be as streamlined as possible. This is where dropshipping can come in handy. It defies the traditional method of purchasing and keeping stock, taking orders, and then fulfilling them all under one brand.
With dropshipping, an entrepreneur sets up an online store with listed products, and when one is purchased, the entrepreneur buys it from a third-party and gets that third-party to ship the product to the customer. It’s a retail fulfilment method that cuts out the now unnecessary shipping logistics. Not only does the business not have to ship in products, but they also don’t need to ship out orders.
The method is rapidly gaining traction with the online community, with as many as 33 percent of online stores utilizing dropshipping, and it’s easy to see why. This method is essentially a hands-off process while getting the benefits of being a merchant seller. Without needing to keep stock or fully commit to items by purchasing before selling, stores using this model can also adapt as they see fit.
Active business owners who incorporate the dropshipping model will also reap the benefits of being changeable thanks to the lack of commitment needed to keeping stock. The site owner can reach out to some suppliers within their chosen theme and list their products, but also keep working to establish new relationships and product access. This way, the listings can always appear fresh, with the merchant having free rein to chop and change what they list depending on what works and what they find.
Getting Dropshipping into Your Startup Site
With so many eCommerce companies discovering dropshipping in recent years, services that cater to start-ups have acted quickly to integrate the method. When looking into how to create an online store, you’ll see how easy it is to incorporate dropshipping. Listed as one of the must-have eCommerce features, reliable dropshipping services are now included via online store creator platforms.
Further supporting the savvy startup is the fact that dropshipping is generally very cheap to set up. Starting an exclusively dropshipping business can be achieved with limited funds, mostly because providers of such integrations in new websites offer the service cheaply. From there, minimal costs come into play as the only products purchased are those that have already been paid for in full by customers.
To set up the dropshipping supply line, you’ll need to align your website with the products that you want to sell. Once you’ve honed in on a range of wares, you’ll need to find a supplier and then negotiate your prices and their shipping times. Once you have established a relationship with your supplier, you can list the products on your eCommerce platforms. Keeping an open line of communication with your supplier will be crucial going forward.
With the site complete and suppliers in the loop, you’ll need to press your advantage. Most other eCommerce sites still operate under the traditional stock-and-sell model, with your advantage as a dropshipping-centric site being that you don’t have to fully commit to products purchased and added to your stock.
So, to maximize the benefits here, you’ll need to be very active in stocking new products regularly, analyse sales and traffic figures, and generate an offering from there. Keep running products that are proving to sell well, play off of them by adding similar products, and cast aside those that don’t work for your business. By continually tweaking, adding, and subtracting, you’ll soon be able to establish a very valuable offering.
Dropshipping is offering a new cost- and time-effective way of breaking into the eCommerce market, with new site builders ready to help you get started.
