When you start to do independent station, you must have often heard Dropshipping mode, Dropshipping as the most simple mode of independent station, the popularity is very high, the advantages of its small cost and low risk is to attract many cross-border newcomers to join, but Dropshipping mode is really so simple? Do you really know enough?
What it means？
What does the Dropshipping model really look like?
If you understand the Dropshipping model in simple terms, it is actually very similar to the unsourced one piece shipping model, where the seller as the sales end does not have the goods in hand, but sends the goods directly to the customer through a third party supplier. The seller is just a bridge, responsible for sending the buyer’s order to the third-party supply, not responsible for the follow-up work.
Its advantages
What makes the Dropshipping model so attractive to sellers? What is the appeal?
1、Low threshold, simple and easy to start
Because sellers do not have inventory backlog, so simplify the operation of the e-commerce process, sellers only need to pay customers, and then order from suppliers, the intermediate links “shipping, logistics, product supply chain, pictures, details page, packaging, distribution, handling returns” do not need to deal with sellers, third-party suppliers will help us responsible for The third party supplier will take care of it for us.
2、Shorten the management cost and time
Undertake the first point, because there is no intermediate link, so there is no need to take up too much money, time and energy, the management costs are reduced, more suitable for individual sellers.
3、Flexible office location
Because no inventory is needed, so as long as there is a network of places, and can maintain communication with suppliers and buyers can operate, also do not need office space, home can also be.
4、Wide selection of products and high service focus
Because there is no need to stock up, so sellers can provide customers with more choices according to market trends and buyers’ needs. And when there are problems with the selected products, they can also be adjusted and replaced in time to choose more high-quality and suitable goods.
5、Expand business
When the supplier assumes a certain amount of product pressure, the seller is equivalent to having a work department dedicated to logistics and products, then there is more time and energy to spend on promotion and marketing, as well as follow-up customer maintenance.
Points to note
However, while the Dropshipping model has many advantages, it is not “easy to learn” and there are still some challenges.
1、Serious homogenization and low profit margin
Dropshipping’s low threshold is both its advantage and its disadvantage. Because of the low threshold means that there are many peers on the market are selling the same products, homogenization is serious, naturally also intensified the competition before the retailer, it is easy to play a price war, the quality of products is also uneven.
2, no inventory autonomy, easy to cause stockouts
Sellers can not master the supplier and inventory situation, if the supplier at the same time to a number of retailers, then it is easy in the peak season and burst single time will produce out of stock situation occurs.
3、Send wrong goods, miss delivery
Products in the hands of the supplier, when the seller sends the order to the supplier may be missed, wrong delivery, late delivery, it is easy to cause buyers do not buy, so sellers need to communicate with the supplier docking in a timely manner.
Some suggestions
How should new sellers operate Dropshipping mode?
1、Refine the operation to create core competitiveness
Product homogenization is actually a Dropshipping model can not avoid a problem, want to solve this problem, sellers can choose to refine operations to create their own advantages, such as when the data received from the supplier, you can carry out secondary and tertiary deep excavation and optimization, including product selection, pictures, copywriting and other details of the adjustment.
2、Concerned about returns and exchanges after-sales issues
In e-commerce operations, product returns and exchanges are one of the most rare things. But the tricky thing is if the supplier and the buyer can not consensus, as a reseller of our situation is very difficult, the loss can only be self-borne, so sellers need to invest more energy and time in this link.
3、Optimize supply chain
Zero inventory also means that there is a shortage of goods, and sellers can not operate only one or two products, so sellers need to optimize the supply chain to avoid shortages, need to reserve multiple suppliers, in order to stabilize the supply.
The low threshold has led to more and more people getting involved in the Dropshipping model, but sellers need to keep in mind that the Dropshipping model is not a get-rich-quick business model, and needs to be operated properly. However, in the case of rapid product renewal, Dropshipping model is indeed a low-cost, low-risk cross-border e-commerce model, but also extremely suitable for newcomers.
And finally…
We are a reliable professional dropshipping fulfillment company, we helped thousands of clients to get business to succeed in the last 5 years. We aims to get rid of the ineffective methods of traditional sellers and deliverers. With first-hand access direct to Chinese suppliers and the infrastructure of China’s well-developed reliable global delivery system, you can improve your sales performance and decrease your costs across the board. If you need a agent making your business succeed, contact us!
