growuptamil

[growuptamil]

It’s easy for anyone to set up a dropshipping store. But if you don’t have the passion within yourself and you don’t have that drive, that fire, and that fuel, you won’t have success.  –Suhail Nurmohamed

#dropshipping #e-commerce

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Dropshipping Business Models

In general, there are three ways to approach a dropshipping online business model.

1. Use WordPress and e-commerce plugins, like WooCommerce, Ecwid, and Jigoshop.

Using WP e-commerce plugin only would require you to upload product images and specifications one-by-one, which can be time-consuming when you intend to sell hundreds or thousands of products. The plugin doesn’t come with any feature that a dropshipping business would require to run smoothly.

Also, the WP theme must be tweaked to ensure it fits the dropshipping model. It’s probably the most common way to sell online, but not the most practical way.

2. Use WordPress, WooCommerce, and dropshipping plugins, like AliDropship, WooDropship, and Ezusy.

Using any of these dropshipping plugins with WooCommerce installed on a WP site is a lifesaver. You can upload the images, and product specs with more ease and these plugins come with conveniences like search and import, auto updating, ePacket shipping filter, pricing automation, order tracking, product customization, and others.

However, since WooCommerce and the dropshipping plugin are installed on your standalone WP site, you need to maintain the e-commerce store by yourself, including the security issue. Many people prefer using dropshipping plugins like these, due to its convenience. 

3. Use Shopify and Oberlo dropshipping app.

Using Shopify platform frees you from worrying about the security issue, and it only takes a few minutes from registration to start your e-commerce store. Its comprehensive features include built-in themes, unlimited bandwidth, secure site, fraud analysis, discount codes, and others.

Installing Oberlo to the Shopify stores dramatically increase the features, particularly those for dropshipping, such as ease in importing product images and specifications, fulfill orders, inventory and price auto updating, product customization, shipment tracking, switch suppliers with the best price, filter products with ePacket, and more. Both Shopify and Oberlo can be tried for free. 

#dropshipping #e-commerce

[growuptamil]

DROPSHIPPING

What is Dropshipping?

Dropshipping is a business model in which the entrepreneur who owns the e-commerce store (that would be you) doesn’t need to stock any inventory before selling them online. The products are sold first before you actually purchase them from the manufacturer, wholesaler, or supplier.

This alone would save a lot of time, money, and other resources, as you don’t need to invest a large amount of stock without knowing they would sell or not. Also, you don’t need to rent a large warehouse to keep the unsold inventory.

What makes this business model even more attractive is that every order is processed, fulfilled, and shipped directly by the wholesaler from which you bought the product from. It’s much less headache for you.

You simply work to increase traffic to the store with your well-written blog, promote the online store on social media, and ensure the customers are well served. The “dirty jobs,” like keeping the stock and processing orders, will be done by the wholesaler.

Now What About the Profit

According to Oberlo statistics, on average, the typical profit margin is 200 percent.

For pricing strategy, you can approach it in two ways. First, match the price with the product quality so that you can increase the profit margin with high-quality products. Second, price your product based on the advertising cost spent. For instance, if it costs $15 to receive one order, the product should be priced beyond it to make a profit.

However, of course, dropshipping also comes with disadvantages.

Among them is the limited control you have, as the store owner, over how the orders are shipped, meaning that you must rely on the wholesaler to process, fulfill, and ship each order. Sometimes, there can be some issues, which should be able to be solved with good communication with the supplier.

Dropshipping business relies heavily on advertising, such as Facebook and Instagram ads, as it depends on “impulse buying” rather than keyword search on Google and other search engines. However, the profit margin would offset this promotion cost.

#dropshipping #online business #e-commerce