Many people dream of becoming a business owner but got stuck with various problems both in terms of capital, product stock, transportation and including not knowing what to start selling. But these problems will go away, if using Dropship merchandising. which is a new way of selling products online no storefront required no employee required no need to stock No need to be fussy about packing and shipping. This allows business operators to focus solely on online marketing to find the right customers, as well as to truly penetrate the needs of the target customers. More importantly, only one person can do this business easily. without a ton of money but earning money every month from dropship sales. What is Dropship and what are the ways to sell products? Let's learn about Dropship here.

What is Dropship?
 

Dropship is selling products without your own products, meaning you don't have to stock products yourself. Dropship merchants are like middlemen who go to the factories or major manufacturers directly and contact the customers. The factory or major manufacturer will deliver the products directly to the customers but use the name of the sender on behalf of the dropship merchant. To do dropship sales business, you must apply to be a sales representative with a dropship website that has stock to choose from or directly from the factory or manufacturer. Then on the Dropship website, the factory or the product manufacturer will pack and ship the product directly to the customer.

How to start a Dropship business?

1. Apply as a Dropship Reseller with a Dropship Service Provider Website. Details can be found on the website. Or find products from e-commerce sites such as alibaba.com, dhgate.com, lightinthebox.com
 

2. Choose to sell products that you are interested in because you will know the market needs or choose to sell products that are trending. For example, people bought an oil-free fryer during the beginning of the Covid pandemic. Or sell a brand that people already trust in or sell products that are cheaper than the market price.
 

3. When you find a product you want to sell, download pictures and product details. By bringing product photos from the website to put in your sales channels such as on your website, Facebook fan page, Instagram, TikTok, LINE, e-commerce websites such as Lazada, Shopee, etc. Pictures should be posted in many angles for customers to see the product clearly. And include as much as product details as possible to help customers make purchases.
 

4. It should create novelty in your online store. By finding a wide variety of items to sell because the variety gives customers more choices and returns to your store regularly.
 

5. In the event that the product can be sold, the buyer will transfer the money to you. You will need to transfer money to the factory or manufacturer or dropship website to deliver the products to your customers. You do not have to ensure the product in any way because the factory or the manufacturer or the dropship website will be responsible for replacement if the product is defective or damaged.

Selling products like this works great if selling via dropship.

Not every product is suitable for dropship sales because it must not be forgotten that the Dropship will require freight. If the product is large or heavy Dropship shipping may not be the answer. More importantly, the cost of shipping if it's too high, may contribute to lesser purchasing decisions. Also, very expensive products are not suitable for dropship sales either because online stores don't have the real products to see, making some people dare to buy expensive items from your online store. The types of products that should be sold via dropship are as follows:
 

1. Products that need to be purchased repeatedly

Imagine that if your online store sells only durable items, you'll have to wait for them to break or go obsolete. It takes a long time for the same customers to come back to buy products again. So, you're always must find new customers. But if you choose products that need to be purchased repeatedly is another way to keep old customers coming back to buy the same products. Because marketing to old customers costs less and is easier than going to new customers. Examples of items that need to be purchased repeatedly include fashion clothes, miscellaneous items, stationery supplies, etc.

2. Hobby goods

Hobby goods are huge money. Plus, no matter how expensive it is, some people are willing to pay. Such as cartoon Figures, Lego building, DIY craft products, children's toys, etc. Importantly, these products are products that the manufacturer will design new products and develop products regularly. The online store can bring new products to sell continuously to motivate customers to always come back to buy new products

3. Products that cannot be purchased in general stores or department stores
 

One of the advantages of dropship sales is selling items that are rarely available in the marketplace or in department stores. This makes buyers must buy from online stores such as some home accessories, car accessories, IT equipment, mobile phone accessories, fancy or cosplay costumes, mother, and child products, etc.

4.Business products
 

Sales of business products in the category of office equipment and supplies. Although this group of customers pays special attention to the price, you will get big orders from this group of customers, they will be a long-term customer. Therefore, selling business products is a good choice for dropship sales.

Dropship Pros and Cons of Dropship Business

Pros

• No investment required, a wide selection of products from Dropship websites or manufacturers
• No need to be proficient in the product. Because Dropship websites have all the information and pictures.
• No need to pack and deliver products by yourself.
• No storefront required. No need to hire someone to pack and deliver.
• Post items to sell from anywhere, anytime.
• Just use online marketing strategies to find customers to buy products.
• No balance required, no membership fee required, and no processing fee.
• Can be made as a second job immediately

Cons

• Dropship business is highly competitive because there are many sellers who use the lowest price strategy to attract customers, resulting in very little profit per piece.
• Be wary of non-standard dropships, mostly from China. And the standard of products and shipping from China is quite low. Sometimes there is no product inspection before delivery. Causing the product to be defective or unusable. Or late delivery, causing customers to cancel the order or return the product, causing your store to lose reputation or get bad reviews from customers.
• There is no difference in products, making it difficult to create branding. Because the products from Dropship come from the same factory. Any seller can post their products online anywhere.
• It is difficult to grow business sustainably because the more you make the factory or the product manufacturer grow.
• Some products cannot actually be marketed. because the cost is quite high
• Dropship shops will not be able to know the actual stock of the products. Because you don't have the information yourself, you must keep updating from the factory or Dropship website.
• Most dropship stores sell products from multiple factories or manufacturers, causing the shipping method is different from each product. For example, the same customer ordered 4 items, but all 4 items came from 4 factories, so the shipping cost was complicated. The solution is to combine shipping with the product price or charge a standard shipping cost to cover all sizes and weights of shipments.

It can be seen that doing dropship online business has both advantages and disadvantages. However, it is an online selling that does not require investment and has less financial risk compared to other forms of online business. Running a dropshipping business requires the store owner's dedication to finding potential customers. Of course, there are many competitors that are ready to take customers away from us. Therefore, patience and making an online marketing strategy are very important and necessary for anyone who wants to run a drop ship online business. Successful online businesses must use SCB Connect, a real assistant of online merchants. Interested to see details here

SCB Connect

 

References

http://www.thebiz.in.th/index.php?lay=show&ac=article&Id=539415992

https://www.weon.website/blog/biz-101-drop-shipping/

https://www.dropshoppingthai.com/article

https://www.dropshippop.com/page