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A Comprehensive Guide on Dropshipping Business

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Mihir Gajjar
April 08, 2020
DropShipping Store

It looks simple like sell products, take orders and make a good profile. Too easy, right?

Well, it looks like a good idea because, in the long run, it’s scalable where you don’t need to do lots of work for the front part. When you see reality by going in deeper; there are lots of complications that you need to be aware of.

What is Dropshipping?

Dropshipping is one of the eCommerce model, where you can sell products to customers, without having your warehouse, or any inventory. Products are shipped directly to final customers from wholesalers.  Your supplier handles all of your product fulfillment needs. Dropshipping is a straightforward business model where store owners just need to work closely and coordinate with suppliers or wholesalers. 

How to start with Dropshipping Business?

Step 1: Set up an online Dropshipping website

Setting up the Dropshipping website is one of the easiest parts of the entire process because Elsner Technologies Pvt Ltd can help you in the consultation of techs.

You can use famous platforms such as Shopify, WooCommerce, Magento, BigCommerce. Contact us for more details, we will recommend best according to your budget and needs.

Step 2: Research Products which are most profitable

You should follow below product guidelines before choosing the products for your Dropshipping store.

  1. Try to avoid electronics items, as there are chances of return and exchange.
  2. Sell goods where you can adjust your basic margin by setting up the average order value of 40 to 70 USD.
  3. Focus on cross-sell products, when the customer buys blazer, suggest them to buy a tie.
  4. Avoid listing the products which go obsolete within a shorter period.

Step 3: Find out Dropship Supplier 

Take care of the Real vs Fake suppliers, review the products and comments or history of the supplier.

Check the suppliers of your competitor and contact them.

Test order from the supplier and note down the customer service, packing and delivery experience.

How does Dropshipping work?

  1. Customers will place an order on your online Dropship store.
  2. The order will be sent to your supplier for fulfillment.
  3. The supplier will directly pack and ship an order to your customers using your branding.
  4. The customer of your Dropship store will be informed of the Order status.

Pros and Cons of Dropshipping:-

Pros of Dropshipping:

  • Initial setup cost is too less, you need to bare minimum investment.
  • Simple and easy to set up a store, but Elsner can make it more convenient for you.
  • There is a low risk of managing the store.
  • You don’t need to worry about the location.
  • If you are selling well after establishing a store, you just have won the world.

Cons of Dropshipping:

  • You need to take care of the margin for your higher profit ratio.
  • The shipping cost is higher and you need to manage the cost for the customers.
  • You may face the frequent shipping, delivery in delay issues.
  • Customer care service can be a pain point.
  • You are dependent on the 3rd party and you may face the trust issue.

So, here you have it everything you wish to learn about dropshipping.