Get a dealer No need to stock stuff, get free agents, get memberships, sales agents, etc. Advertising words like this may have been through the ears of many people who have used the internet, google, social media. This is a drop shipping business or Known short as Dropship (drop chip), a form of online business that is hot that WOW will guide each other. Or if you want to do something, what must be done and what must be known before doing
Dropship sales do not have to have items.
Dropship or Drop Shipping (or sometimes called Dropshipping) is a way of retailing products in a way that stores do not have to have their own products
The way to make money is Bring pictures and characteristics of the products that the store can order for sale, post on the website or web for sale When customers come to order products The store receives the money for the product and then goes to the shop selling the actual product while paying for the product to the store selling products. And the shop will deliver the products to customers
The store’s revenue will come from Difference of product price, for example, assuming a shop announces a sale of 120 baht per item, the shop receives the customer for 120 baht, but the store pays the store to sell the actual product with a lower value, for example, selling the product for 120 baht, but may pay the shop selling. The product is only 100 baht or less than 120 baht, depending on how much you agree.
Dropship sales chart
In summary, the dropship shop will act as the person who buys products from the real store for the customers. Most of the stores are actually factories. Major traders Or the manufacturer of the product itself Where the actual store sends the product on behalf of the dropship store again
Advantages of Dropship
Dropship is an interesting online business model for beginners who are interested in starting their own business for the first time. With a dropship model It allows interested parties to experiment with a variety of business ideas, such as a source of sales representatives. Products that are in demand in the market Sales channels, pricing, etc., because there is no stocking cost. Let’s take a closer look at the information. Well, what’s there?
1. Takes very little cost.
Low cost may be called the biggest advantage and advantage of Drop shipping, because Drop shipping can be done without having to invest a lot of money first. The vendor doesn’t have to buy a single product. Until a customer orders the product and pays in
2. Easy to start
Not enough stock. It’s easier to get started And don’t worry about
- Management or warehouse rental
- Customer delivery pack
- Stock count for accounting
- Manage bounced products
- Continuous stock of products.
3. Little miscellaneous expenses
When there is no need to stock products or manage own warehouse Small expenses are also less. Not a small number of online dropship sellers in our house. That only use one computer to work
Even in the future, as the business grows, dropship operators will have to spend more, for example, hiring employees, but this is still less than running a stock online business.
4. Work anywhere
Is it your dream job ?! Dropshipping is a job that can be done anywhere. As long as you have a computer and the Internet Because as long as you can keep in touch with customers and shippers. Can now do this job
5. There are many products to choose from.
You can sell anything Because you don’t have to stock your own At your own risk But most of the time The vendors will try to control the types of products they sell to be the same, such as clothing, household goods, food supplements, etc.
6.Easy to test the market
Dropshipping is suitable for testing a wide variety of customer needs. Especially miscellaneous goods such as jewelry To brand new products Never been sold before
Because as I said Dropship It helps to test products against customer purchase needs. Before the store decides to produce or order to sell in bulk
7.Easy to scale up your business
If it is a general retail business If you receive 3x more orders from customers, you need to do 3 times the work.
But if it is a dropship business, about 90% of orders will go to the factory that takes orders to handle them. When the workload is less You can expand your business more easily. And expand quickly too
When the business grows Online platforms may not be able to support enough customers. Or do less sales opportunities than having your own web page or Sale Page, which web for this sale. Serves to support customer orders Cut the platform’s commission deduction problem. More control Plus not cutting opportunities for sales on other channels By acting as a manager of all sales channels One click on the update website for every shop.
Cons of Dropship
There have been many advantages, but dropshipping is just like any other business model. With disadvantages or disadvantages Which comes with ease and flexibility That is the highlight of Dropship itself
1. Small profit per piece
Profit per piece of goods or small sales It is a disadvantage of dropship business. Where competition is quite high (Which is mainly due to a business model that is easy to start), many sellers are ready to lower the price to attract customers. Which is ready to offer various merchant offers To compare already
2. Don’t know the real stock.
Normal product sales The seller will make the stock and know what products are available. How much are ready for sale? But when it is a dropship, dropship stores will not know immediately or have information on themselves that Is the product available? What is the new product that is coming? Make a dropship themed shop You have to keep updating your factory and your online store all the time.
However, nowadays, merchants are able to resolve this issue by creating a channel manager system in the grocery website that can update product information to the online sales area off the website.
So when the product is out of stock The product is being refilled. The store just updates the web page itself. The system will automatically update all channels, which the WOW Sale Page has this function as well (you can click here to inquire ).
3. Cumbersome delivery
Dropship themed stores Most of them sell products from a variety of sources. Which the problem must be faced is How to charge the customer Because assuming 1 customer orders 3 pieces of products from your store But all 3 products come from 3 factories, so shipping costs will be more difficult.
Most stores fix this problem by setting prices for products including shipping. Or the delivery cost is the standard one Which is the price that covers shipping of all sizes and weights, etc.
4.Problems from origin
Problems arising from the origin of the product or Supplier is what the shop Dropship cannot be controlled or developed, modified. In addition, the store must fully accept the complaints from customers. It is also responsible for the customer for any purchase and delivery issues that may occur. Because giving factories to share responsibility is difficult and difficult to understand from the customer’s point of view.
5. A little difference Making branding difficult
Products made to dropship stores Will be designed and branded by the product manufacturer In order for various dropship stores to sell, so the difference of products is minimal. (Or until no point at all) to do branding is difficult. Stores that want to do branding may need to discuss with the shipper. Or make a promotion by yourself
What kind of products are suitable for dropship sales?
People buy different kinds of products. Just as we are not as easy to buy a house as we buy fried chicken for 20 baht, there are different ways of selling different products. What items are sold as Dropship? And really works
1. Products for hobby
Money for hobby products is huge. With the value of things or services And commitment to leisure activities. In addition, hobby products are also products that have always been innovative or evolving. Enabling merchants to sell products and continuously supply products to the market
2. Business goods
Business customers are more concerned with price. But if the product has been ordered, it will order a lot, or at least more than the general customer. Including being a long-term customer Continuous order Which are the best customers of the business
3. Products that must be re-purchased
As I said above Customer need for continuous products Is a good thing for the business, so the products that come from dropship stores So many items are often re-bought or bought often, such as clothing stores, miscellaneous goods, stationery.
Example of dropship that sells must-buy products
Small things to look at when choosing a dropship product.
A very expensive product May not be suitable for dropship sales Because the store does not have real products to see and many people may be uncomfortable if buying high-priced products with a dropship shop.
But there are solutions such as finding images of real products sold from the factory to show to customers. Talking to customers directly Not an automatic chat system
Setting a standard price
Most factories or origin products will have a minimum selling price. And let the dropship shop Resell products at a price equal to or higher to prevent a price war. Which often happens with this business model And help merchants who sell their goods for a reasonable profit
Products that are most likely to have an advantage from this rule Specific products Because there will be fewer competitors and fights over reliability and sales channels.
How to advertise a product is something you have to think about before you actually start selling it. Not starting to sell products, just come to think of how to sell What are the methods of advertising?
Such as doing technical website SEO, website structuring Write articles, reviews, products that are sold or the same products that are on the market. Make YouTube clips and embed them on the web, selling products, etc. Choose a method that matches your product and your aptitude.
Supplementary products to the main product
Products you sell Is there a need for spare parts or accessories? For example, selling phones, must have phone cases, charger cables, spare batteries.
Most of these supplementary products will be as profitable for businesses as With or rather than the main product too It is also easy to sell. Because customers who buy the main product tend to buy parts with the same supplier to make sure they are compatible with the main item purchased.
Setting up an online storefront is a very small investment of time and money. But if you have to keep changing Because they can no longer sell the same product group May not be worthwhile, such as a web selling amulets Because the amulet has a relatively short life span If you focus on a single amulet, it may be at high risk
Difficulty in finding products
It’s rare to sell items that you can’t find in local or local department stores. It is a beautiful opportunity to shop online. Because if customers buy that product The neighborhood itself is not. Will start searching on the internet instead
Big or small, it has a huge effect on online businesses at this time. Because many shipping companies use size as a factor in shipping calculations. Including sometimes No charge for shipping Can be used as a promotion to stimulate sales
Therefore, if selling large or heavy items, it may make it harder to do promotions or to compete with competitors.