3 min

November 8, 2021

Online store in dropshipping model

Dropshipping model of sales is gaining more and more popularity. In the following article we will break it down and discuss the benefits and drawbacks of such a solution.

What is a dropshipping model online store.

Dropshipping sales model is gaining more and more popularity. In the following article we will break it down, discuss the benefits and drawbacks of such a model of running an online store from the seller and supplier side.

What is dropshipping?

This is a logistical sales model in which the online store owner does not maintain his own warehouse of products and does not handle shipping. A wholesaler or manufacturer's warehouse takes over these responsibilities. It is he who is responsible for completing, packing and shipping the order directly to the target customer.

For what is the dropshipping model warehouse and store responsible?

On the side of the owner of an online store in the dropshipping model is left the sale of products, acquisition and servicing of customers, as well as formalities related to sales, returns (customers can also send products back directly to the wholesaler) or complaints. It will also be on your side to develop the rules and regulations of the store (you can outsource this to a professional company).

How to start selling in the dropshipping model?

From a good market research. From a product angle - what to sell at a good profit, what market niche can you fill? Decide what products you want to sell. Also consider handling returns or complaints. In the clothing and lingerie industry, the number of returns and exchanges is relatively high.

The next step should be to find a wholesaler or manufacturer with whom you want to cooperate and negotiate terms that satisfy you. Remember about guaranteed lead times, shipping costs.

Another very important step is to choose the e-commerce platform/solution on which your store will be. We will describe some of the most popular solutions in a separate article. A well-prepared and executed integration of systems and correctly transferred xml files will definitely improve the subsequent operation of the store. Also choose a solution for order processing.

Take care of your corporate identity, too - have a professional company create a logo that most closely reflects your business profile.

Get to work! Launch your store.

There's nothing left to do but get customers and start selling. Take advantage of proven methods to reach potential customers. First of all, spend time on SEO - prepare the right content for the site, alternative texts for graphics, work on speeding up page loading. Also take care of promoting your store on social media. Make and follow a marketing plan. You can also invest in paid search.

In summary - the benefits of running a dropshipping store are:

  • minimal business start-up costs - you don't need to invest in goods when setting up your e-store

  • from the first day you can have hundreds or even thousands of products on offer, which you can sell right away

  • freedom of place of work - there is no need to invest in an office, warehouses, premises. You can run your business from home

  • minimal business costs - if you do not exceed the monthly limit equal to half of the national minimum wage in a given year, you do not even need to set up a business to run your own business