Dropshipping is a supply chain business procedure in which the retailer does not keep goods in stock but instead moves the customer’s orders and shipment details to either the manufacturer, another retailer or a wholesaler, who then ships the items directly to the customer.

Dropshipping trade is no doubt one of the simplest and most low risk methods to begin with an online business.

It has advantages and also disadvantages.

Let’s check out the following advantages of dropshipping.

1. Less capital is needed.

2. Sell almost any product in any niche.

3. Easy to get started.

4. No need to share any inventory.

5. No need to pack or ship out products.

Disadvantages of dropshipping.

Now that we’ve seen the advantages, let’s look out for the disadvantages.

1. Not all companies are willing to drop ship.

2. Drop shippers must give you accurate in stock numbers so you don’t sell items if the drop shipper goes out of stock on them.

3. Some drop ship suppliers have inconsistent service, slow down ship times or difficult return policies..

What are the differences between Dropshipping and Class Retail Model?

The greatest difference between Dropshipping and Class Retail Model is that the selling merchant doesn’t stock or own inventory. Instead, the merchant purchases inventory as needed from a third party usually a wholesaler or manufacturer to fulfill customer’s order. 

You need to invest more cash up front for the quality retail but your reward is higher profit margin.

Why do you think dropshipping is legal?

Dropshipping is legal because it’s a form of order fulfilment in which the supplier handles shipping. You only have to pay for the products you sell. You don’t need to maintain inventory. The supplier handles the fulfilment for the order.

How to start Dropshipping business

1. Find a Niche– Selecting a niche you understand so well will give you benefits over your competitors. Without any knowledge about the Niche you pick, you won’t have the ability to pick up on anything fishy about the standard of the products, the process, the pricing or anything related. The niche you choose needs to laser focused and something you are genuinely interested in. A product range that isn’t focused will be difficult to market. If you aren’t passionate about the Niche you select, you will feel discouraged because it takes a lot of work to successfully scalea dropshipping business.

2. Find a Supplier- Doing business with the wrong supplier can destroy your business. So it’s important that you don’t rush this step. Most dropshipping suppliers that are good for Nigerian businesses are located mostly in China.

AliExpress has become one of the largest online resources to identify and communicate with potential manufacturers and suppliers.

Make sure to ask alot of questions and learn what their production capabilities are in the event that your business grows exponentially. You want to be certain they have the ability to scale with you.

3.  Select your platform- When starting a dropshipping business, you can either decide to set up your own ecommerce store or sell on famous eccormerce platforms in Nigeria like Jumia and Konga which allows other mechants to sell on their platform.

It’s advised that you start with second alternative because they take care of so many problems of running and eccormerce business that you may not have the resources to handle. As your business scale, you can consider launching your own eccormerce website.

4.  Promote your business-  The main reason of entering into dropshipping business is to sell something and this can only be attained by constantly looking for innovative and less cost effective way to advertise your business.

Having a great product and website is magnificent but without customers looking to buy, you don’t have a business. Don’t understand estimate the importance of using digital marketing to grow your customer base. This can be done by running targeted ads on Facebook, Instagram and also using SEO to optimize for some keywords on search engines like Google and many more growth hacking tactics you can use. 

5. Email Marketing: Most ecommerce platforms have a plug-in for an email Marketing tool like MailChimp. Collect your customer’s emails and reach out to them each week showing new products, sales and content on your website.

6.  Search engine optimization (SEO): This should be the backbone of all your marketing efforts. It is a set of strategies that improve your website’s position on search engines. Steps you can take to impyyour SEO  include working with a website builder that prioritize SEO(woo commerce) engaging in keyword research based on content marketing and building up the number of backlinks to your website.

7.  Free promotion ( social media): Posting content related to your business on Facebook, Instagram, Twitter and other major social media platforms is a cost effective way to organically market your business social media marketing strategies.

Source link

Leave a Reply

Your email address will not be published.