When a business, one of the biggest concerns is whether the products you have for sale will please your audience begins. Even with a market study, concern is still present, until you start to see customer behavior to your products.
If everything works out in your favor, you’ll run out of products in stock and have to find how to supply new merchandise. If, however, you have trouble selling products you already have in inventory, it becomes a headache that must be removed.
Have product in inventory without movement is like having money stuck; if they are not perishable, you have more time to create new sales strategies. But if you have time limit expiration, often you end up lowering their prices or giving them as a gift in buying some of your new products. Yes, even if you have product in stock, you need to improve your merchandise so he accumulates if you do not do something.
You can spend hours thinking what sales strategy works best to solve this problem, or you can continue reading and a method of selling a bit unknown, but that will surely be very useful, especially if you’re new to the world of sales and not you are willing to have money stashed in a warehouse.
What is dropshipping?
To understand that is dropshipping, you need to be thinking about this term as a method of selling is probably much better known in e – commerce, compared to offline sales. With it you can sell products that do not have in stock, and send another person and deliver to your customers on your behalf.
When working with a dropshipping strategy, your store sells a product but in turn, you buy from a supplier who will handle packaging and shipping the product directly, without your intervention store. Sure, the shipment will be under your name, the product will have your brand and at the end of the process, the credit will be yours.
Compared to the traditional method of marketing, the advantage is that you save buying products to take inventory, storage space and costs associated with shipping. Time once would invest in this task can devote to improving your business strategy, which can improve other areas of your store.
While it is true that applies to most businesses, it has its pros and cons.
Ideal for new business
If in itself is difficult to start a business, coordinating all aspects, pay bills and survive the first month without wanting to give up because you feel that neither flies stop by your business, at least with your strategy dropshipping you can save worry to deal with physical products.
You do not have many obligations
When you engage with a supplier of dropshipping, technically you delegate responsibilities than at any time you would have taken time. Some of these obligations are:
- Pack and ship the product – You can negotiate with the provider you use products with the logo of your brand labels. Similarly, if there is any special request regarding packaging, you can probably manage it for an extra cost.
- Rent a warehouse – Whether or not you a high volume of inventory, must have intended a room to protect the physical product. Probably this will generate extra costs with dropshipping you can save.
- Manage the number of products in inventory – Take control of your products can be another task that takes away time and generate unnecessary costs. Avoid this and leave it in the hands of your expert suppliers.
You can have a wide selection of products
You no longer need to have products in stock, you can offer different products (which the supplier has in inventory) and extend the reach of your brand to other audiences.
You can find providers that handle this method of selling globally. We recommend checking your reputation, compare prices, exchange rates and, especially, have an empathy with them. They will be your logistics partners, so you need to be in the “same channel.”
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Technically your brand is giving the public, and which is wrong if the product does not arrive in a timely manner. As mentioned in the advantages, you need to make a casting of suppliers to select the most appropriate. Remember that you invest not only money, reputation also well worth taking your time and identify a supplier which meets your entire requirements checklist.
Sufficient amount of products available
During the process of buying a client, it can be given at the beginning only want one piece, which you apply to your provider, committing to that amount. But what happens when for some reason you might ask double or triple product? If the supplier has the product, you left the inconvenience; if it does, you probably have to resort to another provider, waiting for you to offer the same quality and the same price.
And while there are ways to synchronize your orders with your supplier’s inventory, not always work perfectly.
Errors by the supplier
Even the most experienced providers in dropshipping make mistakes when sending a product. The worst thing for you, they leave unaffected to the client; does your brand. You have to be aware that if this happens, you will be the need to apologize on behalf of your brand redressing the damage somehow. These errors can range from losing items; send wrong directions, using parquetries low quality, etc.
If you’re wondering whether or not worth implementing a strategy of dropshipping, the truth is we cannot say for sure yes or no. What we can do is recommend that you find out more about this method of sale (there are many guides available dropshipping) and ask you to check if your brand and what customers need. Above all, considers each positive and negative we believe can develop in your business. The above are just a sample of a picture that only you as the owner of your business can meet.