Hey Readers, Dropshipping is a new term in the Indian market. Which is another new way of earning?
But what is Dropshipping? How does it work? What is the procedure of it? Everything we will cover in this blog.
The very first question,
What is Dropshipping?
To make the term simple and easy to understand, let me give you an example.
Suppose there are three persons A, B, and C. A is the dealer, B is you, and C is the customer. A is a dealer of books and comics, who sells his books and comics in 10 rupees each. Now what B will do, B will create a website on which B will share the pictures of books and comics which are available on the store of A, with the price in which B wants to sell. Suppose, B kept the cost of 50rs on each book or comic when C will ask for one book to B online visiting the website. B will take the order and payment from C. Then, B will go to A and tell him to deliver the book which is ordered. And the payment, including shipping charges, will be done by B to A.
That means, B will do all the marketing and targeting customers, including the price in which B wants to sell.
This is nothing but Dropshipping. Here, you can do business without any heavy investment.
You have to pay for the website you need for this and Marketing purposes because you have to do your branding so that you get customers on your site who can trust and purchase products from your website.
Other than this, you no need to have any stock of products or any limit on products of selling because you can sell more than one product or products of more than one sector.
Why do people see it as a good option of income?
There are many reasons to say it is a good option for your income.
1. Sell more than 1 Product:
You get access to millions of products rather than just one. Because I mentioned above, you are not the dealer, so you are not supposed to get a stock of any particular product. Which means at a single time you can sell clothes, accessories, electronic product, basic necessary product, kitchen product, and many more.
2. Easy to Start a Business:
It is effortless to start with a dropshipping business. Because you don’t need any investment in starting, you need a website in the beginning, and then you can go further for marketing and promoting your brand.
3. No headache of Managing, Packing, and Shipping:
You don’t have to stress about managing and other stuff of the product. The simple reason behind this is you have to update the customer’s requirement to the dealer, and the rest of the work starting from packing to delivering will be done by the dealer. So you are just going to focus on marketing promoting your brand and bringing customers.
4. More Profit, Less Investment:
You can earn a good amount of profit from this because dropshipping gives you the chance to sell the product on your pricing. As mentioned in the example above, dealers have their prices, and you will decide the amount you are going to charge from the customers.
Drawbacks of Dropshipping
As it is easy to start, you can have a good profit and create a base of a customer. Beside all this good dids, Dropshipping has some drawbacks which can slow down or stop your growth.
What are these?
1. A huge competition:
As the dropshipping business is easy to start, you can get a good competition on the platform. And to be on top to might have to run a slow race for it.
2. Shipping time can be longer:
After doing good marketing of your brand, there are chances that you might get of customers out of the range of the area. In such cases, it might take more time to deliver the products. This can turn off your customers.
3. Your customers can be a customer of your dealer:
Wondering what I am saying?
Don’t worry; I’ll clear it.
As you are not a person who is delivering the product. There are chances that the dealer can convert the customers into regular customers for them because they have the address the email id that contact details and idea that what can be a product which they will buy next.
What can be a solution to these problems?
1. Give the Quality:
At last quality matters to the customer of the product. If you do good marketing and branding, then eventually you are gaining the trust of the customers on your site. So to build that trust and keep the trust in your products, you need to give them good quality. And h starting you can avail of some offers to lower the price to get more traffic.
2. Expand your dealer market:
That’s what I say to this; you cannot deliver your product in the next state or country, given to them who are quite two cities away from you. In such cases you can be dependent on the courier other than this you can expand your business and try to get as many dealers as possible in certain areas to complete the requirements of your customer.
In the very beginning, you can go for target audience marketing. So that first you get the safe from your area and then you can expand your dealers and then your marketing level.
3. Build the trust of your brand:
Customers don’t just buy a product from anywhere. They ask for the trust, quality, service, and name. If you make a connection with your customers, satisfy the requirements, give them the good quality and the best service you can, including extra offers. Then your customer will be loyal to you. And on the other side if you treat your dealers in the same way, by giving them a good amount of customers along with the payment. Then you can get a profit from both sides, and there will be a minimum risk of losing customers.
With is, I end up my blog over here. I hope I was able to give you the information about dropshipping along with the problems and their solutions.
Do let me know was it useful for you or not in the comment session.
Thank You so much for reading so far.