Dropshipping is a business concept that, thanks to the emergence of the Internet and business through it, allows a company to sell a stock of products without the need to have it.
It is a business model that has been raised from the simplicity so that, relying on the tools offered by the Internet, you can:
- Receive an order through your online store
- Notify directly to your Dropshipper (provider)
- Pay the product to the Supplier
- Send it to the final customer
This allows the online shop created to act as an intermediary. Intermediation process that seeks to delegate certain services of a classic business: need to have available stock, logistical capacity as a company, and so on.
Many are the people who have observed the business opportunity that Dropshipping provides. There are still many more to join the Dropshipping Cart. Of them we will be able to differentiate between the businesses of Dropshipping to those that have followed the tricks that today we raise to you.
Although we have some tricks that can make your dropshipping business triumph, there are certain basic and minimum aspects that the company must have for these tips to have some kind of impact:
- It is essential and necessary that in order to carry out a business model of dropshipping, you have a space in conditions where you can sell your stock of products. For this we recommend you to choose a CMS in conditions that allows to manage all the movements in your page.
- Before starting in the world of online sales, it seems logical to ensure that the investments we are going to make have a return. But more specifically, you must calculate the profit margin of each product you will sell.
- One of the drawbacks of the Dropshipping model is that it is dependent on other companies and businesses for its proper functioning. That’s why we recommend establishing a strong network of suppliers and wholesalers. For the success of a Dropshipping company will depend on the relationship with these suppliers and wholesalers.
- At this point in the film it seems logical to propose a Digital Marketing strategy for your business. Think that, for the most part, Dropshipping businesses are only developed through online stores. So how do we intend to sell in a world where our potential customers don’t know we’re moving?
- Last but not least, you must meet your tax obligations and requirements. All with the purpose that, through a few efforts, you can act as a retailer on the Internet within the law.
Trucos Dropshipping para triunfar
Once detailed the basic aspects to be able to sell products through an online store with the model Dropshipping, we raise you the tricks that will make it successful:
Conduct a market study
It is essential that before starting your economic activity you know in which world, sector or market it is going to be developed. You must know in which market you are developing in order to make the appropriate decisions. Think that in a very competitive sector you will need to know how to differentiate yourself and in an uncompetitive sector you will need to know how to find customers.
For this market study you need to do an internal and external analysis of the market. That is to say, to know the internal capacities that you have of being able to triumph in the sector. But above all, to know how difficult the market is going to make it for your correct business development.
Knowing how yout business develops or how your competition raises will allow you to develop the following advice.
Offering Added Value
One of the drawbacks attached to the Dropshipping business model is that the profit margin per product is usually low. Currently a dropshipping company is around 15% / 20% profit margin on the price of each product.
Therefore, offering a value-added proposal will give you the opportunity to offer the products at a slightly higher price than the others. This allows you to obtain a higher profit margin for each product.
Go from less to more
One of the main mistakes of Dropshipping’s business is to be carried away, at first, by the need to sell. It is evident that we all want to sell the more the better and in less time. But few businesses succeed, so we recommend using the product portfolio as a test tool.
At first you can focus sales on certain products to know their results and make the right decisions accordingly. Perhaps the product you thought would be successful is not sold. This testing process is what will allow you to know on which products your sales will be based.
Once you know which products are sold more, you can start hanging a higher volume of products from your stock.
Hire a PIM
A potential customer who buys through an online store needs to know all the characteristics of the product as if he were buying it face-to-face.
Therefore, the product sheets offered in an e-commerce must detail all the characteristics of the product in question.
A product that appears without an image, title, optimized description or stock will be more difficult to sell than one that meets all of these requirements. Thus, we must know at all times which products in our product portfolio do not have a card in the optimized online store.
In order to know and solve these shortcomings in product sheets of large stocks of products, it is necessary to acquire a PIM (Product Information Management) such as Doodat. This will allow us to detect and solve the problem quickly and quickly, always following the rules of each marketplace in which you want to distribute the product.
Doodat allows you to manage the characteristics of a product from the same panel. Consequently, these can be applied from the same panel in the online store as well as in the main marketplaces (consistent with the characteristics of each one).
Provide exceptional customer service
In online sales credibility and online reputation is paramount for a potential customer to become a customer. Good customer service can be your company’s strongest point. With the emergence of the Internet an unsatisfied customer can become your worst enemy.
A good attention to the client not only allows to generate a credibility in the purchase of a potential client. It will also make your customer recommend and advertise your business for you.
These are just 10 basic tricks to make your Dropshipping company succeed. Yet the possibilities for improving your business are endless. No one better than you is going to know what benefits your business. So, let’s get to work?