What is drop shipping?  |
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Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer. That is to say, you sell the products, and then we arrange the shipment to your customer without any of our information on the goods.
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| What are wholesale lots? |
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The supply chain goes like this: the manufacturer makes the products. In most cases the manufacturer does not sell to the general public because there are specialists (retailers) who exist to do this. The manufacturer can directly sell the product to the retailer, but usually, as a service to the manufacturer a wholesaler or wholesale distributor makes the product available to retailers. The retailer in turn purchases the product (wholesale lots) at a wholesale price which is typically lower than what it would be to the general public. It’s lower because large quantities (a lot) are purchased. Wholesalers always discount the cost per item when a retailer buys them in these large lots. And we (as a wholesaler) can offer you various great wholesale lots with more competitive price.
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| Drop shipping benefits? |
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Two significant benefits of drop shipping are the elimination of upfront inventory and a positive cash-flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a credit card or credit terms. Therefore, there is a period of time in which the seller has the customer's money, but has not yet paid the wholesaler. Drop shipping also eliminates some duplication of effort, since only one warehouse will pick, pack and ship the product. This approach can reduce total inventory management and shipping costs. These cost reductions can subsequently reduce the price to the consumer.
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| How to choose dropship products? |
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Five tips to choose the best dropship products
Tip one: Start Small
Until you’ve built a positive reputation and rating on eBay, with the BBB, and online in general, it’s better to be a little more conservative in your product choices. The best dropship products may be ones in the $10-200 range, which tend to sell well online. Remember, it’s not always the most expensive items that have the largest profit margin: you’ll make more money dropshipping $80 purses if you’re getting them for $20 than you would selling $400 laptops if they cost you $350.
Tip two: Consider Shipping
Whenever you sell a product online, you need to consider how shipping will inflate the price. The cost of the item plus shipping should equal what a person could get the same item for at a brick-and-mortar store. Obviously there are exceptions to this rule: if a product is extremely rare or is not sold in any great variety at your local mall, then it will have a greater demand online. In general, dropshipping items like stainless steel refrigerators and swimming pools don’t work due to the cost of shipping such bulky products.
Tip three: Don’t Be Afraid to Specialize
Choose a niche, not a general store.
You’re not going to be able to compete with the variety and price of products available online from Target or Wal-Mart. However, you can compete in a specialized niche market. Focusing on a niche also allows you to write blogs, articles, and tips closely related to your product, which will improve your SEO (Search Engine Optimization), drive traffic to your website, and help build a relationship with your customers. The best dropship products are often those related to a specific hobby or theme.
Tip four: Find Your Point of Difference
Your website shouldn’t be “just like” anything.
If your site is exactly like a bigger, more established website, how are you going to compete? You need a “point of difference“, a product or service you offer that sets your online business apart. It should fulfill a need in your specific market that is not already being filled. You can get ideas for your point of difference by scoping out your niche community online (joining discussions on message boards, reading blog posts, etc.). You may discover that there are plenty of jewelry-making sites, but none that cater specifically to period-era jewelry, or maybe there are plenty of fishing websites, but a dearth of quality spear-fishing products.
Tip five: Remember Your Own Purchases
If you’re having a horrible time brainstorming, and you just can’t think of anything you want to sell online, think back to the products you’ve bought online over the last month or year. What did you buy? What made you go online instead of to a local store? Why did you choose the specific website you purchased from? How did you find the products you were looking for? Examining your own purchases can give you more than dropship product ideas: it can also help you formulate a web design and marketing strategy.
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| Why choose us as dropship supplier? |
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First: We have plenty of good cooperation factories which could supply us various high quality and low cost products.
Second: There are new arrivals products on our website everyday, which could keep you update with the market.
Third: We will share lots of marketing and hot sale products information on our blog regularly, which could give you a great help to adjust your own business.
Fourth: We have done a lot of job for selecting and testing the dropship products. And you do not need to worry about the quality problem.
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| How to keep your customers’ satisfaction? |
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First: Respond to messages promptly & keep your clients informed.
This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers’ queries within the space of a few hours, but at least email or call them back and let them know you’ve received their message and you’ll contact them about it as soon as possible. Even if you’re not able to solve a problem right away, let the customer know you’re working on it.
Second: Keep your customers update about their order information.
After your customers placing order with you, an order conform email should be sent to tell your customers that their order has been processed or are processing. An email which including order information, tracking number and shipping date should be sent to your customers. You can get all the information form us while you placing the same order on our website
Third: Be friendly and approachable.
This is very true. It’s very important to be friendly, courteous and to make your clients feel like you’re their friend and you’re there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object – it happens to all of us. It’s vital that you keep a clear head, respond to your clients’ wishes as best you can, and at all times remain polite and courteous.
Fourth: Have a clearly-defined customer service policy.
This may not be too important when you’re just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn’t work, then what? Should they contact different people for billing and technical enquiries? If they’re not satisfied with any aspect of your customer service, who should they tell?
There’s nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site — and anywhere else it may be useful.
There are lots of things to do to keep your customers satisfaction. And we would love to share our experiences with you in our lifetime cooperation.
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