subject: Drop Shipping And The Ecommerce Business [print this page] Drop Shipping And The Ecommerce Business Drop Shipping And The Ecommerce Business
Drop shipping is becoming one of the most effective businesses to start off with, especially for beginners.
What Is Drop Shipping?
It involves a retail chain in which the retailer does not maintain a stock of goods but passes on all orders to wholesalers or manufacturers. The retailer profits from the difference between retail and wholesale price.
Some retailers might maintain a sample of the goods while some might simply present a catalog or a link to a website. The idea is to show the customer what he is purchasing.
Drop Shipping and Online Ecommerce
Business that is conducted over an electronic medium, like the internet, is referred to as ecommerce. In the ecommerce industry, drop shipping holds an important place. As a result, a great deal of research and planning goes into running a successful ecommerce drop shipping business.
* Suppliers play an important role in the ecommerce drop shipping business. Try and shortlist genuine drop shipping wholesalers. Interact with each supplier to get an idea of her seriousness towards the business. Suppliers that charge a monthly fee should be avoided. Make efforts to build a strong and lasting relationship for a successful business.
* Products are what you will be finally selling. Make sure you have seen the product you are featuring on your catalog or website. Try to go for items that involve less risk and competition. Customized products are great to sell since they do not stand much competition.
* Pricing has a major role to play here. Customers have access to a large number of suppliers and can compare prices at the click of a button. Maintain a neutral stand. Keep the price neither too high, nor too low.
* Innovation is the key to success. Ideas are quickly running out in the present times. But there is always scope for innovation. The more innovative you are the better chances of success you have.
* Inventory updating is very important here. You need to keep a tab on your stock. Your supplier may be supplying to others, which will change the inventory figures. If this doesn't reflect clearly on your website, that will surely lead to chaos.
Benefits of Drop Shipping
If you have identified a list of genuine and trustworthy drop shippers, running an ecommerce business can be smooth sailing. This business option carries with it a lot of advantages.
* Minimal investment is required to start this business. All you need is a website and a list of trusted drop shippers.
* Convenience is what this form of business carries - both for the buyer and the seller. It can be run from anywhere and at any point of time. What is required is a good internet connection.
* Lowered prices are one appealing feature of the drop shipping business. Since the enterprise can do with minimal set up costs, it can offer the buyers a decent discount on prices.
* Minimal financial loss can be assured here since the seller does not have to maintain a warehouse of finished goods. Changing trends often lead to losses but this will not affect an ecommerce drop shipping business.
Starting an Ecommerce Business
Starting an ecommerce business is not much different from any other business. It requires the same amount of work and dedication. The only difference you would find is your presence. In a regular business, you possess a physical entity while you have an electronic presence in the ecommerce field. Like any enterprise, bear in mind the following before taking the leap.
* Try coming up with a novel idea
* Study your possible competitors
* Research the source of your goods
* Research the prices of competitors' goods
* Brush up your financial knowledge
* Get an appealing and easily-navigable website
This is just before you begin your drop shipping ecommerce business, but once started; do not let your dedication falter at any stage.
