SEO, CRM, PPC, and KPI. It seems as if the online retail community has become associated with a virtual “alphabet soup” of acronyms and technical analogies. Get ready for another one. The good news is that this additional method is much easier to understand and (at the point that this article was written) it is not yet associated with a confusing acronym. This next concept is known as drop shipping and it is taking the online sales sector by storm.
However, what is drop shipping? What factors does it involve? Are there any benefits that cannot be found with traditional methods of shipping? If we how to fully appreciate how to start drop shipping to your client base, it is always wise to answer each of these questions in greater detail.
Drop Shipping at a Glance: The Important Points to Appreciate
So, how exactly does drop shipping work? The first concept is to understand what it is able to eliminate. These issues will no longer represent concerns to your business:
- Domestic and international shipping rates.
- Excessive storage and warehouse fees.
- Chasing orders and tracking delivery dates.
This has become a reality thanks to the very nature of drop shipping. The seller is less concerned with logistics and as a result, focus can be returned to other key areas such as sales and marketing. This arises from the fact that a third-party product supplier is used. Let’s break this down even further through the use of a real-world example.
An online business is marketing smartphone cases to a growing audience. Once a sale is confirmed, a supplier is contacted. This supplier thereafter ships the product to the end user. In other words, the seller is no longer involved with the intricacies of logistics. Products will no longer require in-house storage; another major benefit in the event that an individual is working from home or from a relatively small office. The mechanics are rather simple and yet, there are other advantages which should never be taken lightly.
Why Are Businesses Choosing Drop Shipping as an Alternative?
Cost is another important factor, as the proverbial “bottom line” will often draw the line between success and failure. Drop shipping has done away with many of the traditional in-house fees that would otherwise be accrued. Furthermore, it is often possible to offer certain products at wholesale prices. This is a massive benefit when we consider the sheer volume of competition that will need to be faced within the online retail sector. Clients will be impressed with what you have to offer and if you embrace the correct marketing campaign, they are likely to use your services in the future.
How to Choose the Proper Drop Shipping Provider
Much like any other business model, not all drop shipping services are able to embrace the same levels of transparency and efficiency. This is why it is critical that you perform a substantial amount of research if you hope to avoid pitfalls in the future. First and foremost, keep in mind that you will be required to sell the products that are currently being offered by the third-party firm. So, it only makes sense to choose large firms such as Oberlo; they will offer a truly massive selection of items to advertise and sell.
Payment methods are another concern, as some will not accept certain times of transfers. This is why flexibility is always important to address. Major credit cards, electronic wire transfers and even cryptocurrencies should all be available payment gateways. Take a look at the type of encryption offered as well, as the last thing you want is to find that the payment details of your loyal clients have become compromised.
Finally, examine the types of customer support available. Can you contact a representative in real time if a question or problem arises? How many points of contact are available? The best provide options such as dedicated email addresses, phone numbers and online chatbots.
What Should You Take Into Account to Experience Success in the Coming Year?
Always remember that not all products will offer you a sustainable source of income. It is your responsibility to perform research in order to determine which items are expected to be trending in the coming year. Some interesting examples include wireless drones and mobile phone cases. Another point to highlight is that a drop shipping platform alone will not ensure success in 2019. You need to embrace other powerful strategies such as cross-channel marketing, proactive client engagement and appreciating how specific sales campaigns are performing. If you are able to attain this level of insight, the chances are high that your business will enjoy a great deal of growth in the coming year. Drop shipping is here to stay and you can implement such a platform directly into your current sales pipeline in no time at all.