Platforms for dropshipping, its pros and cons.
The first platform from which your drop begins is, in fact, the site. It can be simple and complex, it all depends on your imagination and ambition. You can do it yourself or contact specialists.
If the complex is an online store, a convenient store is a simple design and clear structure, a minimum of pages, navigation, access to your contacts and the ability to contact via WhatsApp or Viber, as well as clear and informative descriptions.
When creating a store site, it is important to consider the following parameters:
- What format is available for creating-a single-page or multi-page website, landing page or showcase. The best option for dropshipping is a full-fledged multi-page online store.
- The ability to control the balances at the supplier, change prices, set discounts on purchases, process orders independently or with the involvement of managers.
- On some platforms you can promote through Yandex, Google, through social networks. Build your marketing plans and determine the tasks that will help you solve certain promotion services.
- To attract customers, each platform indicates the number of partners, the advantage is the presence of partners from China, since it is difficult to work directly with them, we are always there to help you.
Thus, based on the criteria, you can correlate “price – quality” and choose a convenient platform.
Pros and cons of dropshipping.
The main advantage is the ability to organize a business from scratch and the lack of need for start-up capital as such. No need to buy a minimum batch of goods, rent a store or warehouse, just a page in Instagram.
- There are no costs for promotion, that is, you can use any convenient, but only legitimate methods – target, context, word of mouth, ads, and so on.
- You can expand the range without spending, and if you want-even change the scope of activity, without selling off the rest.
- No shipping and packaging costs. And with large volumes, they are very large. Assistance is provided by the supplier, additionally advertising the store and laying, as a rule, these services are already included in the price of the product.
- You can manage the store from anywhere in the world, if you have an Internet connection, as well as manufacturers – you can find them everywhere from Europe to the United States or just by contacting us.
- The amount of income is not limited, it depends only on your capabilities and efforts: the more suppliers, the more diverse the range and the more favorable the terms of cooperation, the higher the prospects for your development.
Dropshippers always win – they increase the turnover and get a net profit without additional investments for the opening of pick-up points, stores and advertising budget.
In practice, it is always more visible, there are both pros and cons.
Here are the main ones:
- The main and perhaps the most important disadvantage is the loss of customer loyalty when delivering low-quality goods, but the risk of such interaction with the dropshipper is less than with wholesale orders, because when the first complaint is received, you can refuse to cooperate with an unscrupulous manufacturer.
- The store owner is not always informed about the remaining stock. If the intermediary does not provide access to them, there is a high risk of delivery failure due to the lack of goods. But if the supplier is large, this rarely happens. Usually it all comes down to managers, whose workload simply does not allow you to track these changes every day.
- Violation of deadlines – to track the delivery, you need to request a track number, since without it, you can not work out the customer’s claim if the product is not delivered on time.
- If the dropshipper cooperates with several suppliers and the buyer pays for the delivery, then when ordering several products, they will be sent in different packages, which will lead to additional costs for the customer. In this case, the online store can compensate for this at the expense of its profit.
- The financial risk of returning the product and incurring additional postage costs. Such situations should be spelled out in the contract with the manufacturer.
- The supplier may send the customer a booklet with wholesale prices in the package, which will negatively affect the reputation and income of the store. This can also be avoided by agreeing on these points in the contract.
- Sales revenue will be lower than expected if a small margin is made to maintain competitiveness and attract customers. But this can be your advantage, especially in front of a new unknown store. The main income will be due to growth and the number of sales.