What is Dropshipping?
The principle of dropshipping is relatively simple, this about selling products to your customers without having the pressure of stocking products. You might be thinking of finding a partner first, who can provide services such as source, purchase, package, fulfill, even after-sales services. This means you would never have physical products because your partner like Wiio, send products to your customers directly. The vital thing you need to do is operate your online store on the platform that you preferred.
Dropshipping is great for merchants because it doesn’t demand as much as the traditional business model. The merchant is mainly responsible for gaining customers, keeping in touch with customers, and choosing products in trends, meaning you will be an effective middleman. With dropshipping, you can build a business that’s sustainable in the long term right from your laptop or mobile.
Three key points to start dropshipping Create online store Set up an online store on your preferred platform, such as Shopify, WooCommerce, Magento, BigCommerce, Wix, etc. Choose products Find specific products you like to sell in your store by Wiio or choose products from other eCommerce platforms. Find partner A reliable partner is a key factor in your business.
With Wiio you will get more profits and also build your brand image. Of course, there are also many drawbacks and advantages, and we must learn them before you start your own business. Once you understand the pros and cons of dropshipping, it will be easy for you to operate your business.
The Benefits of dropshipping
1. Start easily
You don’t need to be a business guru or a successful merchant to get started. You don’t even need any business experience! If you are willing to take some time to learn the basics, you can get started quickly and get the rest as you go along. Less capital is required. All of this means that you can start your business anytime. You can start getting everything up and running within a matter of hours.
2. Flexible
That is one of the attractive benefits. You can get to be your own business and set your own rules. It’s by far one of the most flexible careers that anyone can pursue. You can run your dropshipping business anywhere with an internet connection. As long as you can communicate with suppliers and customers, you can run and manage your business.
3. Wide selection
Since you don’t have to pre-purchase the items you sell, you can offer an array of trending products to your potential customers. If suppliers stock an item, you can list it for sale on your online store at no additional cost.
4. Easy to manage and grow
Since it doesn’t require you to make any commitments, you can manage everything with little hassle. Once you’ve found suppliers or partners, you’re mostly only responsible for your online storefront. As you grow up, your business model doesn’t have to change very much at all. On the contrary, you have to put more work into sales and marketing as you grow, and pay more attention to your customers and products.
The disadvantage of Dropshipping
1. No full control
One of the disadvantages of dropshipping is you don’t have much control of the dropshipping process, such as stocking products, order fulfillment, and shipping. You have to rely on your suppliers to do everything. This lack of control can be a disappointment to some entrepreneurs, but it usually isn’t a problem.
2. Partner errors
Have you ever been blamed for something that wasn’t your fault, but you had to accept responsibility for the mistake anyway? Even the best dropshipping suppliers make mistakes, which you have to take responsibility for it and apologize. And irresponsible and low-quality suppliers will cause endless problems, such as missing products, sending the wrong address, and low-quality packing, which can damage your business reputation and even you may lose the trust of your customers.
3. Low margins
Low margin is the greatest disadvantage of operating a dropshipping store in a highly competitive vertical. Because it’s so easy to get started, and the overhead costs are so minimal. So many competitors have gone up. They sell items at rock-bottom prices. Since they’ve invested so little in getting the business started, they can afford to operate it.
4. Limited customization and branding
Unlike customized products or printed on-demand, dropshipping doesn’t give you a lot of control over the product itself. Usually, a product is designed and branded by the supplier. Some suppliers can accommodate your business’s product changes, but even then, the supplier has the most control over the product itself. Any changes or additions to the product usually require a minimum order quantity to make it viable and affordable for the manufacturer. That because customized or unique products will cost suppliers or factories much time on it.
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