Dropshipping PROS N’ CONS
Everything You Need To Know About This Business Model
The dropshipping is an innovative business model quite useful for those people who do not have large capital and who want to start generating income.
This novel form of marketing is ideal especially for users who handle the social media; however, for the business to be profitable enough, it is important to have a great reach with the public, that is, to be popular in the digital realm.
If you are looking to acquire knowledge about this business option, in this article we will tell you what you need to know to start the right way.
How does dropshipping work?
Dropshipping is an online sales trend widely used by a large number of merchants, where you can sell products belonging to other brands in mutual agreement with its manufacturer.
This business model allows you to offer certain third-party products.
Basically you act as an intermediary since you do not have to invest a penny in the purchase of said products. This means that you sell a product through an e-commerce and you earn a commission, at the time of sale, the supplier will receive a notification and will take care that the product goes straight to the customer’s hands.
Benefits of dropshipping
As we mentioned, dropshipping is a business that can be very lucrative so that can bring benefits both to the one in charge of the online store and to the dropshipper or manufacturer.
The main advantage of this work model is that it does not require large investments , since it is not necessary to purchase or ship the products.
In this case, the largest investment is directed to the time required to manage the online store optimizing it and at the same time, as it is a digital store, there is no need to spend on renting a warehouse for items, let alone personnel when it comes to a physical store.
One of the most important advantages of this business is the ability you can have to reach the public without much effort, since the management is done mainly through social networks, something widely used by small, medium and large companies to boost their growth.
Likewise, it is beneficial to the manufacturer because he does not need to invest his time to gain more clientele.
Disadvantages of this business model
Just as dropshipping has great advantages, it also has some drawbacks that you should consider before starting this business.
First of all! we can mention the high costs that can be generated by shipments.
This is because it may be the case that customers perform the purchase of several products from different dropshippers. This can result in double spending in shipments since the order of the products of both parties is made individually.
For this reason, it is important to let the customer know that shipments will be made separately, it being understood that the cancellation of the packages will be made in the same way. Therefore, High costs that may arise can decrease the amount of sales that are made through the online store.
Secondly! we must consider the value required to stay in the first Search Engine rankings, either through ad campaigns or by optimization of popularity. In this case, it is essential to use SEO properly to position the store at the desired point and take into account the investment that it must be done in paid ads.
If you’re not investing the necessary time and effort, the page or social network you are using to offer the products will not be very popular and sales may be minimal. For this, the retailer must know how to operate SEO and SEM, in order to increase visitor traffic.
It is important that the supplier’s commitment is present in each sale, taking care of, so that each delivery is made in the stipulated time to generate good experiences.
Otherwise, the burden of complaints and misunderstandings will fall solely on the intermediary which can be a difficult problem to handle.
How to recognize a good dropshipper?
To start working in this medium as an intermediary or merchant, it is essential that you know how to choose a good supplier ; for this, you have to take in a series of factors that will facilitate the task.
A very useful tip to differentiate good and bad wholesalers is that the more informal, the more they use to charge for the affiliation, while the serious ones only do it at the time of ordering.
On the other hand, it is ideal to get a local dropshipper , in order to reduce shipping costs and delivery time. This is a very important factor taken into account by the customers, as when it comes to international shipments, customs issues can increase inconvenience with buyers.
It is extremely important that the dropshipper handles everything referred to the packaging and shipping of your products .
For this, it is convenient that you provide service follow-up of the order, so that the client knows the status of the order all the time.
In addition, the dropshipper must always include the invoice for each purchase , as well as the return service in case of any inconvenience. All this data, by minuscule as they seem, they differentiate a good provider from one with little or no experience.
Today, dropshipping is a very convenient job opportunity thanks to the benefits of digital marketing . In addition, it is a good way to work from the comfort of home, especially when you have other responsibilities. If you are looking for a low investment business alternative, dropshipping may be the right choice; with a good strategy and choosing the adequate product, this model can generate you extra income in a simple and sustainable way.
And finally… I want to go over a couple of quick basic things you need to know before starting your dropshipping website.
In this last part what I want to go over is cost
¿How much is it going to be to build this website?
The only thing that you’re going to have to pay for is the hosting, everything else including the domain name, wordpress which is the free website building platform that I recommend, and the templates are all free and if you guys are really new to this and you aren’t sure what website hosting is or a domain name is, here’s how I usually break it down for people:
Your domain name is simply the name of your website, for example (youtube.com, google.com, whatever name you want followed by .net/.com/.co/.store etc.), those are examples of domain names.
And now for the hosting try to think of it like this: If you’re going to build a new house you would need the land to put the house on first, then if you think of your website as the house and the hosting as your land, it can help simplify things pretty much.
Basically your hosting is where your website is going to live online, you can use any hosting provider you want but in this case I will say Bluehost since after trying others, I found this one to work pretty good and smooth, not to mention that it includes a free domain name, it has WordPress total design freedom and it has a very low price which makes it even better.
Check Out The Bluehost Review 2021 There ↓
I put a link here in case you want to see it for yourself.