Dropseller

Dropseller

Definition Of Dropseller

Dropseller is a merchant who does not possess inventory and orders his merchandise from a third party when dealing with a customer.

Definition Of Dropshipping

Dropshipping is a way of conducting retail business where a shop does not keep the products in stock. When a dropseller sells a product, he purchases it from a third party and ships it directly to the customer.

Shopify

One of the most popular ecommerce platforms that dropsellers use is Shopify. It has two ways for conducting dropshipping. The first way is when the consumer finds a supplier using supplier databases. The second way is when consumers use the application of Shopify, which connects the consumers with thousands of suppliers.

Shopify has created its marketplace, Oberlo, that helps businesses find products for selling. For example, you can import products from AliExpress directly to Oberlo, connected to your Shopify store with the click of a button.

When a customer buys a product, you can place the order in the Oberlo by only checking the details and clicking the order button. Then the product is sent from AliExpress dropshipping supplier to the customer.

Pros Of Dropshipping

Easy To Start

An e-commerce business is more accessible to start without having physical goods. You don't have to worry about such things as the maintenance of a warehouse, packing and shipment, etc.

Low Expenses

For starters, one of the main problems is the requirement of an upfront investment. In dropshipping, you receive an order and payment and then buy the product. So, it is possible to start a dropshipping business with little money.

Dropshipping requires low overhead expenses because you don't need to purchase inventory or manage a warehouse. Today many dropshipping stores are home-based. It is not difficult to imagine that this business requires a bit more than a laptop and a few recurring expenses.

Flexible Location And Large Selection Of Products To Sell

You can conduct a dropshipping business from anywhere if you have an internet connection.

As you do not have to pre-obtain the goods you offer to customers, you can sell a list of trending goods.

Easy To Test

Dropshipping is an effective method not only for launching a new store but for those businesses who want to test selling new product categories.

Cons Of Dropshipping

Tough Competition

As in dropshipping, the overhead expenses are quite low. Many dropsellers sell goods at rock-bottom prices. It can make it difficult to compete in the dropshipping market and create obstacles for many starters.

Inventory Problems

Keeping track of items in and out of stock is relatively easy when you maintain your warehouse. You source from multiple suppliers and numerous warehouses in dropshipping, and it is difficult to review the inventory changes. However, the good news is that nowadays there are many apps which help you synchronise information with suppliers.

Difficulties of Shipment

This point refers to cases when a consumer places a few orders simultaneously, each order from a separate supplier. In this case, the shipping costs can increase. Of course, you can pass this cost to the customer, but it would not be a very wise decision. Besides, even if you decide to do so, it can be difficult to automate the calculations.

Errors Of Suppliers

Dropsellers are sometimes responsible for mistakes that aren't their fault. Whenever suppliers make mistakes, dropsellers have to take responsibility.

Limited Control Over The Product

Dropsellers don't have strong control over the products they sell because the supplier designs the product. Even if you may have some opportunities to change the product, it will usually require a minimum order quantity to make it affordable for the manufacturer.

How To Become A Dropseller

You can become a dropseller by following the steps described below:

Find dropshipping products. The following criteria are essential when choosing products for dropshipping.

• Retail and wholesale price
• Packaging and shipping costs
• Possibility to sell related products
• Durability

Find the right dropshipping supplier. Here are some tips on how to choose a good supplier.

• Find an experienced partner.
• Choose a supplier who provides high-quality products.
• Find a dropshipper with advanced technological capabilities.
• Choose a punctual and efficiently working supplier.

Start a dropshipping business. To become a successful dropseller, you might pay attention to the following factors.

• Marketing (using social media, customer ratings, e-mail marketing, growth hacking, etc.)
• A strategy how to deal with refunds, returns and replacements for dropshipped products.
• Efficient customer support service.

Continuously grow the business

• Sell through multi-channels (Amazon, eBay, Shopify, etc.)
• Have your own online dropshipping store.
• Always do marketing and advertising.

Scroll down to read our indepth Ecommerce Platforms guide. What you should know, Ecommerce Platforms features, price plans and support. Pros and Cons of Ecommerce Platforms as a ecommerce, everything is explained below.

Overview of Dropseller

Shopify is a software company that specialises in ecommerce software for small to enterprise level businesses.

Shopify is listed as the best ecommerce software related to Ecommerce Platforms. Shopify was founded in 2006 in Ottawa, Canada and currently has over 6,124 employees registered on Linkedin.

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