The freedom and flexibility of running an inventory-free eCommerce website is exciting. Like any business, to achieve and maintain success you must continue to explore new business strategies. The tips below are designed to help new and existing dropshippers take their business to the next level.
What is a Dropship Business?
If you are unfamiliar with dropshipping, it is an inventory-free method of selling physical products.
You identify wholesale suppliers who keep inventory on hand, in stock, and up-to-date. They create an online catalog for you to browse, and the SKU and product information required for you to post their products on your website.
When you sell an item online, you submit the order and pay the wholesale price of the order—and the dropshipper ships your buyer’s order with a generic “Fulfillment Center” label. In most cases, you have full control over the retail markup.
In other words, this is an online-only business you can launch with minimal startup costs, and operate from anywhere in the world with internet connection!
Identifying Reliable Dropship Partners
To launch as successful dropship business, you need to identify reliable dropship partners. Wholesalers who keep their product inventory up-to-date, who promptly ship your orders, and who have a fair and fast return or exchange process. If your current wholesaler can’t do that it’s time to find an alternative.
Improving Your Product Mix
You have no control over each wholesaler’s inventory so you must also identify wholesalers who provide products that your buyers want. They must also introduce new products on a weekly or monthly basis, and have at least a few hundred products to choose from. Ideally, a few thousand.
The exception to this rule would be individual product-line dropship partners, such as a retailer who sells a small inventory of handmade soaps or artisanal products.
Expanding and improving your products mix is an excellent way to take your business to the next level. It requires you to identify complimentary products and upsells. For example, if you sell men and women’s jewelry and accessories—you could also sell jewelry boxes, accessory drawer organizers, and scarf and tie hangers.
Automating Your Communication
Customers don’t like to be left wondering if their order was received, or if is it on the way. If you don’t already use a tool that automates updates such as sending an email when an order is placed, and again when it is shipped—you are behind the curve.
However, sales-related or follow-up emails is not the only type of communication that should be automated. At the very least, set up an automated opt-in newsletter for each sale you make. Then send out monthly email updates to keep your customers up-to-date with what’s new.
Expanding Your Sales Channels
Whether your current sales channel is sound, or lacking—it never hurts to expand. As with anything, be strategic.
In fact, keep your website, but consider selling the same products on eBay and Amazon.
eBay and Amazon can be particularly advantageous because they already have millions of daily visitors. That being said, you will need to keep a closer eye on your markups to ensure a competitive price and attractive profit margin.
Investing in Dropship Software Service and Tool
A basic dropship software provides you with a streamlined back-of-house, workflow, and sales and reporting tools. However, some software systems do much more.
While the inventory-free business model of dropshipping keeps costs low, you may find yourself paying handsomely just to partner with a reputable dropship supplier. This cost is so high for some, that it may limit your product selection.
An alternative is to identify a combined dropship partner and tool who provides the back-of-house and business software, and the built-in wholesale partnerships. This can expand your product inventory mix to well over a million products, all from established US and Canada-based wholesalers.
Not to mention make running your business faster and easier!
The dropship business model is designed to be fast and easy to get up and running, and easy to maintain. Many choose it as a part-time secondary stream of income, while others jump in full-time. Whichever option you decide to explore, an ongoing commitment to remaining competitive is a must.
Wholesale2b is the creator of several turnkey dropship Apps that can be installed in your store with simple easy steps. Wholesale2b can help you import thousands of dropship products to your store and automate the daily inventory updates. Get started today by visiting our site at http://www.wholesale2b.com.