Dropshipping: Tips for Newbies

Dropshipping in a Nutshell

The first question is “what is dropshipping?” Is it good for an entrepreneur to start a dropshipping business and becomes a dropshipper? The answer depends on your situation. The term ‘dropshipper’ itself is varied in different perspectives.

One Step Before Running a Bigger Business

Dropshipping is one of the easiest business to start. No huge capital is needed. You don’t even need a produce a product in the first place. Dropshipping is a different business model since you don’t need a distributor to give the product right in front of the customer.

Aim Your Market Correctly

Market share is the first step to run a business. First thing first, you should know that you can sell anything. As long as it’s legal. Otherwise, you will be behind the bar, right?
Since you can sell anything to anyone, you need to consider both the market and the product simultaneously. For example, if you want to sell something to a Moslem woman, you can try hijab or another kind of Moslem wear. For a dropshipper, you don’t need to have a warehouse to keep all the goods. You can simply send the product from the producer and write several addresses right away.

Product to Tell, Product to Sell

Since you don’t have your own warehouse or even produce your own product, then the next biggest question is choosing your product to dropship. A product should be affordable by you and related to your customer needs.
One more thing, you can also make a new customer need by educating them. Let’s take an example. Pocari Sweat has a history of creating a healthy drink for anyone. And since most healthy drink has a bad taste, you can find it differently. The CEO has the idea to make a healthy drink with a better taste by using sweet-sour yet refreshing taste for all people. But the thing is people in Japan doesn’t know that they need this kind of healthy drink. So, to make them buy the drink, they educate them by approaching people who like to workout first. And it becomes so popular until this day.

Networking with Suppliers

You don’t produce your own product in the first place. After you’ve decided the goods that you want to sell, you should find the right supplier to help you with the product issue. Finding a supplier is neither hard nor easy. For example, if you want to be a fish dropshipper, then you will need to find a supplier that has a warehouse near to the ocean. They will bring you fresh fish from the sea and you can directly send the fish to your customer.

The weakness of Dropshipping Method

Yep, although it looks easy to start, it doesn’t mean you won’t face any obstacles in the future. The dropshipping method also has its weakness. There is no such thing as nirvana in business. That’s why management, planning, and adaptive character are always needed to ensure your fortune.

Price War

Hmmm, as we know it, the dropshipping method is quite easy in the first place. If you start this business, then anyone could start it as well. Just like yours, they can find suppliers and dropship the product to their customers. Even to the same customer as yours. So, there will be a price war between dropshippers.
To make your store stand out, you will need approaches like special service, free gift, discount, coupon, or anything that could make brand advocate and loyal customer. Instead of playing with the price (it’s not effective enough tho), try those approaches and try to be different. Don’t follow the trend!

Out-of-Stock Order

An out-of-stock order could be a huge problem if the customer doesn’t want to buy anything from your store anymore. Perhaps they even tell other people to not buy from your store. It would be harsh.
The solution is networking with suppliers. Working with one supplier will give higher chance to an out-of-stock product. Rather than working one supplier, you can try to work with two or more suppliers. Also, try to find unlimited product lines. Especially if you have been working for long enough and want to keep your loyal customer.

What’s Next?

After releasing a dropshipping business and save some money, you can try to enter a bigger stage in creating your own online store. The next level will be setting up your own online store. If a dropshipping business could be done on another marketplace website, now you can start your own website and use it based on the dropshipping method.

Final Word

Dropshipping has been a valuable business since long ago. Even if don’t have internet yet. But now, since it becomes way easier to run this kind of business, then you need to be prepared. Make sure you deal with the weakness of dropshipping. And if you do, you can start your own website store right away. Feel free to start the business with us and we will figure out the best solution possible.