How Dropshipping Business Works In India
03:09:00
Drop shipping is a fulfillment method that does not require
a business to keep products in stock. Instead, when a store sells a product, it
purchases the item from a third party and has it shipped directly to the
customer.
The beautiful thing about selling products is that you don't
have to buy any inventory beforehand. You buy the items as you sell them,
shipping straight to your customer's house.
Tips
- Large varieties of products available in stock including the biggest makes.
- Prices and reductions adapted for professionals
- A complete and personalized account.
- A professional team at your service.
Benefits of Dropshipping
1. Less Capital Is Required
Probably the biggest advantage to dropshipping is that it's
possible to launch an e-commerce store without having to invest thousands of
dollars in inventory upfront. Traditionally, retailers have had to tie up huge
amounts of capital purchasing inventory.
With the drop-shipping model, you don't have to purchase a
product unless you already made the sale and have been paid by the customer.
Without major up-front inventory investments, it's possible to start a
successful dropshipping business with very little money.
2.Flexible Location
A dropshipping business can be run from just about anywhere
with an internet connection. As long as you can communicate with suppliers and
customers easily , you can manage your business.
3.Wide Selection of Products
Because you don't have to pre-purchase the items you sell,
you can offer an array of products to your potential customers. If suppliers
stock an item, you can list if for sale on your website at no additional cost.
4.Easy to Scale
Because you don't have to pre-purchase the items you sell,
you can offer an array of products to your potential customers. If suppliers
stock an item, you can list if for sale on your website at no additional cost.
5.Low Overhead
Because you don't have to deal with purchasing inventory or
managing a warehouse, your overhead expenses are quite low. In fact, many
successful dropshipping businesses are run from a home office with a laptop .
As you grow, these expenses will likely increase but will still be low compared
to those of traditional brick-and-mortar businesses.
Disadvantages of Drop shipping
1.Low Margins
Low margins are the biggest disadvantage to operating in a
highly competitive drop shipping niche. Because it's so easy to get started –
and the overhead costs are so minimal – many merchants will set up shop and
sell items at rock-bottom prices in an attempt to grow revenue. They've
invested so little in getting the business started so they can afford to
operate on minuscule margins.
2.Inventory Issues
If you stock all your own items, it's relatively simple to
keep track of which items are in and out of stock. But when you're sourcing
from multiple warehouses, which are also fulfilling orders for other merchants,
inventory changes on a daily basis. While there are ways you can better sync
your store's inventory with your suppliers', these solutions don't always work
seamlessly, and suppliers don't always support the technology required.
3.Shipping Complexities
If you work with multiple suppliers as most drop shippers do
the products on your website will be sourced through a number of different drop
shippers. This complicates your shipping costs. Let's say a customer places an
order for three items, all of which are available only from separate suppliers.
You'll incur three separate shipping charges for sending each item to the
customer. And even if you did want to pass these charges along, automating
these calculations can be difficult.
4.Supplier 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
fulfilling orders – mistakes for which you have to take responsibility and
apologize. And mediocre and low-quality suppliers will cause endless
frustration with missing items, botched shipments and low-quality packing,
which can damage your business's reputation.
Best 5 Challenges in Drop-Shipping
1. Start with the Right E-commerce Platform Provider
Since all your operations start with an online store it's
important that you find the right eCommerce platform provider to start the
business. Often you end-up investing in technologies that you don't need. Start
small and then scale-up to meet the demands.
2. Find the Right Drop-shipping Partner
In a fast paced world coined with customer satisfaction,
only the best can survive. Finding the right drop-shipping partner can play a
important role in determining the success of your digital venture. You need to
determined right partners who are ready to fulfill the order when an order is
received. Also, you need to look after the fact that most logistics handlers
may carelessly handle the consignment. Which in turn results in damage or even
loss of goods.
At no cost, the process should result in a bleak customer
satisfaction. Your customer is your asset, at no point they are worried about
how you manage and run an enterprise. They paid for your service and they
deserved to be treated with empathy.
3.Shipping Complexities
If you work with multiple suppliers as most drop shippers do
the products on your website will be sourced through a number of different drop
shippers. This complicates your shipping costs. Let's say a customer places an
order for three items, all of which are available only from separate suppliers.
You'll incur three separate shipping charges for sending each item to the
customer. And even if you did want to pass these charges along, automating
these calculations can be difficult.
4. Select the Right Product
Not every product has a high commercial value. So make sure
that the products you offer are unique and have some commercial value. Try not
to drop-ship regular products.
5. Up-Selling and Cross-Selling
Makes sure that you will use your customer data to Upsell
and cross-sell products. Position re-target the customer with similar products
with a higher discount rate and higher sales value. Cross-selling is an amazing
way to offer the customer an additional option to purchase products that are
highly intertwined with the primary product
Does the dropshipping business model work in India?
Lots of people keep any items in stock yourself is a big
load off. All you do is pay for the item and pocket the difference between your
wholesale price and your customer's price. You have no inventory to keep track
of and no obligations of fulfillment, it's all done for you by the
drop-shipper. Is It Sounds really great?
Many new store owners fail to realize that those profit margins are not so good and if they should screw up your order or ship
something too late - it's YOU who gets to deal with the customer. You also
don't want to be dealing with a drop-shipper who makes a habit of shipping
faulty items.
Before you can start searching for your reliable dropship
supplier, you'll need to ensure you have a few things taken care of
Are they manufacturer or wholesaler of the product?
What are their prices like?
What margins they offer?
Useful Link
:https://seasonsway.com/india/dropshipping/dropshipping-reseller-india.php
0 comments