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DropShipping

Understanding Dropshipping

What is Dropshipping

Dropshipping enables online stores the ability to offer products without having them in inventory. The way it works is, an online store makes a deal with a product supplier where the store sells the products and the supplier sends it out. The online store merchant never has to touch the products themselves. Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.

Dropshipping Benefits

Low Investment

One of the BIG advantage of drop shipping is that, you dont need to invest a lot of money. Tranditionally retailers meed to put a lot of money in any business and which is at a very high risk. With a lot of competiion in market, making money is very difficult. Without major up-front inventory investments, it’s possible to start a successful dropshipping business with very little money.

Ease to Start

  • There are various issues which all warehouse owners face. In case of dropshipping you don’t need to worry about this issues.
  • Managing a warehouse could be nightmare.
  • Shipping and packing your orders need somebody to work for you.
  • Tracking inventory needs a workforce.
  • Returns and invound shipping.
  • Managing stock level and back order management is needed for any warehouse.

Minimize Risk

  • Money does not need to be paid upfront to acquire the inventory which means that if the business does not pan out, the only money you have lost is what you paid to get your website started
  • Your business is less susceptible to loss of revenue as a result of changes in tastes or trends because there is no such thing as excess inventory
  • Lower volume niche products can be offered along-side popular best sellers

Other Benefits

  • Low Overhead
  • Flexible Locations
  • Wide selection of products
  • Easy to scale

Starting A Dropshipping Business

There is a verious opinion on how much percent of total retailers are doing drop shipping. Around 20-30 percent retailers are dropshipping their products. It is a proven business model and you will be safe to start this business. Organizations are having mixed model or selling their goods online. it doesnt matter if the company is small or big, lot of them are involved in selling stuff online using dropshipping.

There are lot of big advantages of starting dropshipping business. You just have to decide which products you want to sell. Need to know the right source of getting these products at the right wholesale price. Our professional sourcing team can match you with the right supplier and products at the right price. Interesting part is that, it is totally FREE. We do not charge for this service.

The benefit of dropshipping business is that you dont need to deal with lot of problems brick and mortar or traditional businesses are having. To understandit more, we can divide businesses in three categories

 

1) Brick Mortar Business

  • Business with physical store and limited inventory.
  • Salary, Rent, Electricity bills, Phone bills
  • Employees Salary
  • Location Insurance
  • Quarterly CPA expenses
  • Lease terms are 5 to 10 years
  • Lot of risk even if you are experienced

 

2) Online Selling Business

  • Own a warehouse and start selling from there.
  • Salary, Rent, Electricity, Phone bills
  • Employees Salary
  • Huge insurance
  • CPA expenses
  • Huge risk
  • Lease terms are generally 5-10 years

 

3)  Drop Shipping Business

  • No Upfront big cost of starting a business. It varies from 50 grand to 1-2 millions or more.
  • No Warehouses Need
  • No Rent to physical location
  • No Electricity and other expenses
  • No Employees Needed
  • No Insurance required for physical location
  • Dont pay any salary
  • No Accounting Work or legal work
  • Minimum Risk

To start a new Dropshipping business, we provide services starting from getting a good sourcing company, helping you with products selection and creating a beautiful looking website for you.

What we are looking from our customers – You just need to share your idea and niche product you would like to start with.

Need More Insight?

How Drop Shipping Works

You will work with the big wholesalers or distributors. They already have big warehouses setup and get millions of the orders everyday. Most of the time they are located in China or USA. If they are located in China, the delivery of items would be delayed but price would be very competitive. Wholesalers located in USA could be expensive or not expensive depending on what kind of products you decide to sell. If products are made in USA only then USA located wholesalers are preferred. Many Chinese manufacturers are having warehouses in USA too. Advantage of selling products directly from USA is that, deliver of items would be fast because of item location. Our research team can give you list of sourcing companies or work with you to find our right company for you. This service is totally FREE of cost.

 

After selecting sourcing company, most important part of this business is focus on your website and marketing. Writing a blog and social media marketing are the most important part of your responsiblity. Writing blogs about your products help to get awareness about your website, brand and bring more customers to your website. Regular update on Facebook/Instagram/Youtube/Google or any other social media platform is very important. Pay per click marketing is the way to start getting customers on your website immediately. Pay per click markting can be done or google/yahoo/amazon etc. Initial investment with these platform will give a kickstart. Essentially what you are doing is – promoting your products. We help our customers to build website in various platforms including Shopify, Magento, Bigcommerce etc and do social media marketing/pay per click marketing.

 

After the products are sold and you have sales order ready, these need to be fulfilled by one of your sourcing companies. The process of sending your sales order to drop shipping company can be manual or automated. Depending on the method of communication, orders should be dispatched to them online/scan and send in email or simply forward orders in PDF format and soucing company pick, pack and ship order for you. The company will get their wholesale price from you. They dont care what price you are charging from the customer. Also sourcing company doent put any pricing details on shipping label, so it is transparent from your customer that who is shipping the orders.

 

Drop ship companies charge a fee for the service they providing, it varies from 2 to 5 dollars per item or per order. It is shipping and handling fees which is on the top of wholesale price. Which doesnt mean that you dont make profit on the sold products. Profit margin is made by the diff in sale price and wholesale price.

How We Can Help You

The process of keeping track of sales and coordinating them between the supplier and the buyer can be complicated and time-consuming, but it doesn’t have to be. Which brings us to help you.

Storage space

Unlimited number of products with no limitaion on space is given. We provide you the best Ecommerce platform which will let your online shop sell without limitations.

Safety

We offers fraud protection and Secure Socket Layer (SSL) encryption. This is for the protection of you and your customers. SSL technology makes it possible to send online payments securely and is a must-have on all Ecommerce sites.

Site Design

Our solution have a user-friendly interface. We will make it easy for you to create your online store. We provide world class support from our support center. Support service is best and provided at the best rates. Considering customers need well-designed menus, filters, and sorting options will minimize the amount of time it takes to find a product and purchase it. Universal search gives customers an option to search for products by description or tags. Website looks are approved by our customers. Our designers are helps to visualize your idea and implement it with your vision. Sites created by us are pleasing to the eye and can improve a customer’s overall shopping experience. Just like in a physical store, a cluttered and disorganized e shop display will leave customers frustrated and empty-handed, whereas a streamlined and enjoyable buying process will encourage purchasing.

Platforms

We work with all platforms available in market. It is your choice that which option you want to go with. Most Popular platforms we work with are following.

  • Shopify
  • Magento
  • Open Cart
  • WordPress
  • Bigcommerce

Other Task

  • We do complete management (add/edit/delete) of the warehouses.
  • Assign the warehouse automatically or manually.
  • Google Maps API based address auto-complete.
  • Select the email template for order approval and new warehouse account.
  • Select shipping methods for every warehouse.
  • Separate warehouse manager login for managing the orders and shipments.
  • Assign warehouses to unassigned orders.
  • Add shipping rates information.
  • Mention warehouse stock quantity in the products.
  • Add warehouse products price rules.
  • Map category with warehouse category.
  • Add the Data-Flow Profile to map product attributes with warehouse product attributes.
  • Import multiple warehouse products using single CSV, XML, and XLS file.
  • Import individual warehouse products using CSV, XML, and XLS file.
  • Applying price rules on warehouse products during import using CSV, XML, and XLS file.
  • Analyse sales and view orders, products.

Best Drop Shippers

Dropshipping companies have advantages and disadvantages. Online dropshipping business owners need to do their due diligence based on their specific needs.

Here is an overview of the list of most popular dropshipping suppliers. Browse their websites and products offering by them.

  • AliExpress
  • SaleHoo
  • Doba
  • Wholesale2B
  • Worldwide Brands
  • Wholesale Central
  • Dropship Direct
  • Sunrise Wholesale
  • MegaGoods
  • InventorySource
  • National Dropshippers
  • Dropshipper.com
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Cover All Your Sourcing Need

No matter what you're looking for, our professional sourcing team will match you the right supplier and products at the right price. It could be Wholesale bulk buys, Drop-ship programs, White-labeled products, Custom products.

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