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Without a plan, you are just a sailor with no wind in your sails and no direction you want to arrive at.

 

Importance of Business Plan

Things to do before making business plan

Elements of an e-commerce business plan

 

 

An idea can come to you anywhere and anytime, what matters is if you are capitalizing on it. There are so many ideas that have popped in our heads and we have delayed working on it due to sheer laziness. So, if you are here researching on your crazy business idea, then we applaud you for your diligence. You have won half the battle already!

Importance of Business Plan

“It does not do to leave a live dragon out of your calculations, if you live near him.”- J.R.R Tolkien

The author was speaking of an imaginary world, but it could be applicable in real world scenarios too. Think about it, starting a business without a contingency plan for risks, like the dragon, would be negligent. Along with planning for your business, you need to find all the elements that will affect your business directly or indirectly.

Business Planning will make or break your business. Without a plan, you are just a sailor with no wind in your sails and no direction you want to arrive at.

You can read more- Business Models

Business Planning will help you:

Account for risks and weaknesses

Knowing the strength of your competitor and the potential risks that your business could face will help you prepare for it better. It will help you understand where your weakness lies and how you could work on improving. Knowing is better than ignorance.

Communicate with Stakeholders

Your business plan will help you find a direction and motto which can be communicated to the investor, employee or partner easily. It is a tool that will put your business ideas on paper and if the stakeholders like the direction you are taking, you have successfully convinced them.

Make better decisions

Your focus doesn’t get concentrated in one aspect of your business, say- sales strategy. With a business plan, you work on management, human resources, finance, marketing etc with equal attention, hence helping you take informed decisions.

Getting funds for your business

Potential investors will want to see a written document of your business plan before they finalize on you. It is better to give them a detailed and thorough plan so they are on the same page as you. Your funding will depend on how good and professional your business plan will be.

Things to do before making business plan

Determine when you need to have a plan

It’s a trick question. You always need to have a plan. However, a business plan needs to be put in place when you are starting something, for example: You are just starting out with your business, you are looking for funding or if you are venturing into a new niche within your existing business.

Research on competition

You can begin to make your plan by researching on requirements as well as taking inspiration from companies that are in the same niche as yours, i.e competitors. It will help you understand what strategy is working for them and what isn’t.

Find a promising niche

You need to be unique in what you are selling, that is the only way an audience will come to you. You have to give the customer what they want and aren’t getting elsewhere. So, do a heavy research on what you want to sell.

Starting an Online store

The first step would be obvious- building a website. You can try Shopify as it is a platform completely dedicated to building ecommerce stores and managing them. Shopify is easier to use as compared to other website development options because it has minimal manual work. Since you are new to the ecommerce world, it has a lot of resources providing information about online selling.

Dropshipping would be a great option for new sellers as it is budget friendly.

You can learn more – What is Dropshipping 101

Printrove is a dropshipping company that gives you a free Shopify trial.

Starting out on a platform like Shopify will help you kick-start your business.

Elements of an e-commerce business plan

The choice to enter an e-commerce business at this time is proactive and wise because recent studies have projected an 84 billion ecommerce market by 2021 in the country.

Nevertheless, that doesn’t rid you of the responsibilities and meticulous planning an e-commerce business plan requires.

Ask yourself these questions and their answers will lead you to a concrete business plan.

What is your business model?

How do you want to deliver your products?

What sales channels will suit your business?

What is your marketing method and budget?

What is the pricing of your product and profit margin?

How do you plan to launch your business?

Once you have established answers for these questions, you’ll have a rough sketch on what to put in your e-commerce business plan. You can arrange it according to the following elements:

Executive Summary

You will be writing this at the end but it will be an outline that will cover your entire plan. Organization of your content will make things clearer for you and also avoid extra work. Your selling point will strongly emerge in this summary.

You will have to include these in your summary:

• Your mission statement which should be crisp and reach the point you are making directly.
• The objectives you will be targeting, there can be many objectives but ensure they all work towards a singular goal.
• The essential information of start date, founders, key players etc.
• Product information because that is your main pitch
• Growth plan

Company Description

This will be a longer description of your summary, delving deeply into your company information and how you choose to describe it. It will include:

• Stating who the ownership mantle belongs to
• what the business model will be
• what are the company requirements
• how will the operations go about.

Products

This is where you emphasize on what product you are selling and how will it be a success. You have to account for:

• Expenses of raw materials and production
• Method of acquiring the product
• Determining the life cycle of the product so you’re aware of how often you need to update
• Making a strong distinction of the product from its competitors

Market Analysis

This involves defining who your target audience is and how you plan to attract them towards your store. The research and analysis will help you strategize your sales and marketing plans.

Under this element, you will be studying about the market segmentation, competition and industry.

Marketing Strategy

Like any other business, even an ecommerce store will have to put in place a competitive marketing strategy to boost sales. Being an ecommerce store, you will have a good digitally active audience so you should use it to your benefit.

• Prepare a content strategy for social media and website
• Promote your store with Online and Offline Ads
• Hire a PR team to look after your media mentions
• Write catchy taglines

You can read more – How to Market Your Ecommerce Business with Dropshipping

Operation Plan

It might sound tedious and redundant but it is important. Your operation plan will include deciding on the the office hours, employees, location and management team. This part of the plan will be the main activity you will be doing the entire day. So, plan well for your hours and employees because they are huge contributors to your business.

Financial Plan

You can still forget about making a business plan but you can’t escape from making a finance plan!

Financial planning will reduce risks or surprises of sudden losses because you have accounted for them already. You will only achieve success if your financial planning has been smart and you haven’t incurred a lot of losses.

You mainly have to account for the raw operational cost as the capital remains fixed, current assets and profit/loss projections. This operating cost will be of raw materials, production, advertising, compensation etc.

Introducing dropshipping into your ecommerce business can help you cut down on a lot of costs. Learn about the pros and cons of dropshipping here.

Growth Tracker

How will you judge if you have done well without celebrating the small victories? It is very important for employee morale and company growth that you set small targets and acknowledge them when you achieve them. It will become a regular motivational boost.

Your growth tracker will be defined by you, so it can be getting a blue tick on social media or getting your first bulk order, it is up to you. It can be smaller goals such as crossing 100 likes on Instagram and getting 5 positive reviews.

The next step..

Once you have your business plan ready, it is time to approach investors and get the funding you need for your business. It can seem a little intimidating to have so many things in place, but when you have a plan, you have a direction. Without a direction, you will be just a headless chicken running around!

Order Fulfillment and Effective Supply Chain operation is key to having a successful Dropshipping business.

What is Dropshipping

How does Dropshipping Work

The Supply Chain for a Dropshipping Business Model

What is Supply Chain Management

Why is Supply Chain Management Important for Dropshippers

 

What makes us who we are today? Our journey through life. In a slightly less philosophical association, a supply chain is the journey of a product – from the ideation stage to reaching the end customer as a finished product. The fulfillment process, on the other hand, is about how the order placed gets delivered and this is where dropshipping comes into the picture.

Let’s break down this complex concept into smaller parts.

What is Dropshipping?

It is an inventory-less ecommerce business model in which there are 3 parties involved: The seller, the customer and the dropshipping company.

When a customer places an order on the seller’s website, the seller notifies the dropshipping company about it who makes the product, packages it and gets it delivered. This means that the production happens only when an order is placed and the seller only has to manage the website and its marketing.

You can read more about Dropshipping here.

How Does Dropshipping Work?

A dropshipping model would look something like this:

• Customer places an order on the website
• Once the order is placed, seller informs drop shipper
• Drop shipper makes the product
• Product is packaged and delivered to end customer by drop shipper
• Payment is made by the end customer to seller which is cumulative of drop shipping charges as well as profit for the merchant.

You can read about its profitability in India here.

The Supply Chain for a Dropshipping Business Model

Manufacturers → Wholesalers → Retailers

Manufacturers are the ones who, as the word suggests, make the product. Right from the ideation stage to the final product stage, manufacturer looks after the production.

They don’t directly sell the product to the end customer instead they sell it to wholesalers and retailers who sell it to the customers.

If you are buying from a manufacturer, then the costs are comparatively lower but you will have to place a bulk order.

Wholesalers are the ones who buy in bulk from the manufacturers, might or might not make slight changes to the product and then sell them to retailers. They also have a minimum bulk order criteria but it is generally much lower than the manufacturer bulk order requirements.

Retailers purchase from the wholesalers and sell it directly to the end customer. It can be anyone who is selling (not necessarily fulfilling) and is in direct contact with their customers.

Dropshipping can come into this chain at any point because any of these parties can provide the services of dropshipping. It is an invisible helping hand that keeps the business going.

For example, if the manufacturer also provides dropshipping services, then the product will be made, packed and delivered by him under the brand name of the wholesaler/retailer.

Here, the original seller does not need to have a ready inventory at their business location.They are just outsourcing it from the dropshipping company.

The dropshipping company only stores the stock and ships it when there is an order placed.

What Is Supply Chain Management?

It is managing the supply chain process in a manner that it works effectively without any glitches or miscommunications. It is an intangible source (because management can’t be touched) more like a controller, that ensures the smooth functioning of the supply chain.

A lot of companies hire Supply Chain Management Professionals because they are operating on a huge scale and with expansion comes a lot of responsibility.

Why Is Supply Chain Management Important For Dropshippers?

With a pumping market expansion and merging of global boundaries, it is important to manage your supply chain process for a smooth business operation.

While it is an ideal option for inventory business models, it applies to dropshipping companies too. Without a disciplined supply chain management, the manufacturer would end up making too much or too less of the stock and if there is a problem in one part of the chain, everyone else is affected, including dropshipper.

Online dropshippers usually work with technology and customer relations so it is important for them to be aware of the stock requirements and be able to assess or predict market demand. The fulfillment of the order is everything that dropshipping aims for and hence a supply chain management is important.

Concluding..

Dropshipping business model would help a seller in terms of inventory storage, order fulfillment, packaging and of course, production. This can help an online seller be location-independent and focus heavily on the marketing and business development strategies. So, even though there is an invisible force existing in the supply chain (dropshipping), the white label services make it a credible one.

Develop a well defined marketing strategy and engage in conversations that are relevant to your industry

 

There is no dream big enough that can’t be achieved and by that we mean, make the impossible attainable. If you are starting out as an entrepreneur in the e-commerce world and you have chosen to partner with a dropshipping company, you can do so much with your business. Your production and delivery is handled by the dropshipper and thus, you can focus on business development and marketing.

Marketing is a wide spectrum and to hit the right note can be intimidating. Your research on the market structure and buyer personas need to be crisp and relevant. Use all the information you have and channel it in the direction you want your brand to take.

The thing with marketing is that you aren’t just selling your product, you have to sell a thought, an ideology or a lifestyle along with it.

So figure out what your business future should look like and then when you arrive at the marketing strategy, you can refer to the points below.

Here is How you Market Your Dropshipping Business

1. Build Trust

No business will survive unless your customers have established a firm confidence in you. Like most human relationships, a business relationship also requires you to put in a lot of effort. You need to be more interactive with your audience and make them believe about your transparency in operations.

You can do this by adding testimonials to your website of your existing or past clients, customers or partners who will speak about their experience with you.

Adding a customer review page will also help because it will make it easier for you to grow your brand. Potential customers could refer to past reviews and then come at a purchase decision.

The bad reviews can be taken into serious consideration for product improvement and your response to them will also make the customer realize that you aren’t leaving them high and dry.

2. Set Your Marketing Budget

You first need to identify who your target audience is and what channels you need to use to reach them. If your product is targeting a teenage audience, then social media would be the best bet. You can run google ads and facebook ads to get their attention but do it keeping in mind the budget you have.

If you think your marketing strategy is definitely getting you sales then it won’t hurt to invest more in your budget. At the end of the day, your product will only sell if people know about it.

3. Find Your Niche Audience

Just like you would look for a group that shares the same interests as yours, you should look for groups that your niche audience hangs out in. Find discussion forums like Reddit, Quora and Tumblr and participate in the discussions there.

Don’t try to aggressively market your brand as they are there to seek more information on the subject. The more credible your information, the more people will look towards your product.

4. Free Samples To Influencers

One of the best ways to make sales is by getting affiliates for your brand. Most affiliates are bloggers and influencers on social media who have a good range of followers and can reach a wider audience.

Here, your audience is already defined for you and you are directly interacting with them. Provide free samples to your influencers so they can try it and write about it in a way that will appeal to their audience.

Free samples will get you more affiliates and they will get the freedom to actually try the product and experiment with it.

5. Communicate With Bloggers And Press

It might sound redundant but it is actually very important to stay in touch with bloggers and the media houses. The new updates on your store will be covered by these platforms and it will only make your outreach circle wider.

Your comments and mention on blog posts will drive more traffic to your website because only people interested in your industry will be reading up on them.

6. Email Marketing

Despite the emergence of social media, emails don’t lose their ground. They are the epitome of the online world expansion. For professional and business deals, email marketing is the best option. There are a lot of things you can manage to cover when you have an email list of your target audience and existing customers.

Follow up is a very important function as it helps you understand the customer’s perspective and reminds them of your existence. Follow up email series will help in getting a response from your customers and taking the conversation forward.

Promotional emails create awareness in a more professional and organized manner as you will be providing them with all the necessary details and because you are personally addressing them, they will feel important.

Newsletters will help you update your existing customers of what is new at your company and what do you plan to come up with next. All doubts and queries could also be solved when you are personally emailing them.

7. Encourage Sharing Of Your Content

The “word of mouth” version of the online business world is sharing of your profile and links to the website by people who already follow you. You can also approach friends and family for this, get as many people you know to share your social media profiles and websites.

It helps in spreading the word and once people see that there have been so many shares, it automatically makes them believe that so many people trust your brand.

Concluding..

You have an added advantage when you drop ship: Time. That’s right, you will get abundant time to focus on marketing and business developments which can help you cross your own expectations of business growth. The only thing is you need to believe you can make it big and work diligently on achieving that.

With more time and power in your hands to handle your business, dropshipping helps you in creating a trustworthy brand despite the division of work.

• Understanding Dropshipping and Why it works
• What is Branding and Why is it Important
• How do you build a trustable brand with Dropshipping

While Shakespeare must have questioned “What’s in a name?”, businesses may have also pondered upon the importance of having a brand name. Dropshipping is a relatively new concept and because of the delivery and production being in the drop shipping company’s hand, it might seem impossible to create a trustable brand. Well, that is not true.

Let us understand this with more details.

Understanding Dropshipping and Why It Works

The thing with e-commerce businesses is that for the rest of world it looks easy but in reality it is just as tough as any other business model. The set of risks and problems are different from the traditional methods but, there are risks.

Traditional businesses would probably opt for products that aren’t niche just to save losses from experimentation. E-commerce gives you an audience that is looking for something beyond the regular range of products (it is moving to ecommerce for regular products as well now) and it can be difficult to ascertain the profit margins and contingent losses.

Dropshipping comes to rescue ecommerce businesses by providing them a service that can promise convenience, timeliness and credibility. In short, Dropshipping is a business model in which a seller works with a third party company (dropshipping company) to produce and deliver their products.

The online business of the seller displays a variety of products and once the order is placed, the dropshipper prepares it and delivers it to the end customer.

Still confused? Read- What is Dropshipping

The advantages? You are saving on:

• Money
• Workforce
• Inventory
• Location Rent
• Divided attention to business activities

Have a good look at the Pros and Cons of Dropshipping to make an informed decision.

Once you have shared the responsibility with a drop shipper, you can concentrate on the core business operations like: Marketing, Expansion and Branding.

What is Branding and Why is it Important

In its purest definition, branding is what differentiates you from your competition. Think about a brand you like and list down the things you remember about it. For example, you like coca cola.

What do you notice about it?

The brand name: Coca Cola (Coke)

The brand colour: Red and White

The brand tagline: Taste the feeling

There might be many things more that you remember about coca cola like the emotionally impactful advertisements or their sponsorship in huge events. The point is, you don’t call it cola or soda anymore. Coca cola is a brand name that has become a representative for the soft drink industry as a whole.

This is the importance of Branding- making your product seem like the only product in the market.

Your business gets its own recognition because of a unique logo that people remember as your brand. The logo is the face of your company and it should be an easy but powerful one so people remember it.

Your business value increases because of your brand image which will make it easier for you to launch more products and services. You will also benefit because of the referrals coming in as you generate new customers.

You will be able to establish loyalty in your customers as well as employees because they will want to belong to a brand name. Branding also gives you a professional edge and presence in the marketplace because your company name defines you.

There are many advantages to branding and even if you are in a dropshipping business collaboration, branding is important and possible.

How Do You Build a Trustable Brand With Dropshipping

It is similar to building a brand regardless of a dropshipping company involvement, however, there are a few functions that will be specific to dropshipping.

Let’s begin:

1. Create a Brand

People live for the stories. The journey is more fascinating to an onlooker than the final destination a person has arrived on. You need to spill your brand story all over the brand as this will act as a USP. Create a brand story with essential details and glorify parts which you think define your brand.

It is important to create a brand because it serves the most crucial purpose – sets you apart from your competition.

Notice all the leading brand competitions and how you think of them as different:

KFC and Mcdonald’s

Cafe Coffee Day and Barista

Adidas and Nike

2. Decide your Brand focus and Tone

You need to have a mission statement which will make your objectives clearer for you as well as your audience. That one thing which you are offering and the purpose behind it needs to be defined so the focus of your brand has a direction.

The second thing you need to decide is the tone that you want your brand to showcase. Are you a sarcastic brand, funny brand, young brand, professional brand?

Your taglines, advertisements, social media interactions and discussions will determine this. Choosing a tone heavily depends on what audience you are targeting, for example – Apple has a superior and classy tone as it is targeting an upper middle class audience – “if you don’t have an iPhone, you don’t have an iPhone”

3. Choose a Name

This is what your audience is going to call you when they speak about you to other people. Make sure it is a simple and approachable name. You can choose a name that subtly hints at what your brand does or do the complete opposite.

There are a lot of options you could use to name your brand, you can even make up words or merge two words. Make a list of all the options you want to consider and then based on popular opinion, settle for a brand name.

For example- Our brand name- Printrove is derived from two words:

Print- which means our print on demand option, hints at what our brand does

Trove- means a treasure chest, stating our variety of options

4. Write a catchy tagline

Taglines are everything. When you attach a catchphrase to your brand, your popularity will speak of it indefinitely. Every discussion forum will address it, everyone will remember your brand by this tagline, every competitor will target it etc.

A good tagline will put your brand in focus and in everyday conversations. There have been so many great taglines used by brands that have made them so popular:

McDonalds- I’m lovin it

Tata Tea – Jaago Re

Pepsi – Oh yes Abhi

L’oreal – Because you’re worth it

Garnier – Take Care

KFC – It’s finger licking good

Jockey – Jockey or nothing

5. Design a Logo

We cannot emphasize enough on how important it is to design a good logo. This is the first point of contact your audience has with your brand. You need to have a logo that is a combination of creative and simple.

The colour scheme you choose, the fonts, the size of the font, the background etc matter a lot when you are designing a logo.

Be sure to have a logo that you would want your audience to remember as it will be a part of all your events, sponsorships, packaging etc.

6. Plan a Sales and Marketing Strategy

Since you are collaborating with a dropshipping company, you get more time to focus on your marketing and sales strategy.

Choose which sales channel you want to use and what kind of audience are you targeting. For marketing, outdoor and indoor marketing methods need to be considered. Your logo, brand name and tagline will appear up close for everyone to see and you should make sure it is correctly placed,whether on a hoarding or a pamphlet.

Social media marketing will also work wonders for you as this is where you can give your brand a voice and tone by the kind of posts you publish.

7. Be Original when Dropshipping

You need to keep one thing in mind when you are dropshipping that your dropshipper is providing the same products to a lot of other companies as well. This means that the product quality and build is the same and you can’t change that.

What you can change and make your product still unique is the design. Choose a dropshipping company that gives you an option to print your own designs on the products.

Your brand logo will anyway be differentiating you from your competitors but a specific design will be your USP.

8. Request for White Label Services

White Label services mean that the dropshipping company will be producing and delivering products but under the brand name of the seller. So, every function which requires a brand name will be attached to the seller’s brand name:

• Label on Products will be of the Seller’s Brand
• Custom Brand Pack Ins which include small notes or coupons of the Seller’s brand
• Custom Packaging with the Seller’s brand logo and design
• Custom Shipping notifications which update the end customer about shipment under the brand name and not the shipping company

You can learn more on how to find the right dropshipper here.

Concluding…

Contrary to the popular preconceived notion that branding is not possible with dropshipping, we hope this article clears that doubt because dropshipping is much more than what the definition provides. A wide range of possibilities open up when you dropship and handle business operations with dedicated focus. Printrove offers Custom Branding Services which can fulfill all your requirements.

Drop shipping is an extravagant and slightly risky business whose profitability heavily relies on your product type. If your product is niche and in high demand, you will be flourishing. If not, the loss won’t be as much since you don’t have a ready inventory.

Coming to India, Drop shipping has worked wonders for many drop shippers and over time the customer experience has also improved. Let us understand this better.

How Does Drop Shipping Work?

An inventory-less business model, drop shipping has 3 parties involved in its process: The seller, the end customer and the drop shipping company.

A seller sets up an online store which displays the products. A customer navigates on this ecommerce website and finds the product he is looking for.

Once the order is placed, the seller informs the drop shipping company. The dropshipping company then makes the product, packages it and delivers it to the end customer.

Under ideal circumstances, the work gets divided between the seller and the drop shipping company and good coordination between them gives the customer a good experience.

When it comes to India, drop shipping is definitely a profitable business because of many reasons. If it is not working out well, then you might find the reasons for the same listed below.

Reasons why Drop shipping works in India

Dropshipping is a hit concept and a profitable one in India because there is so much scope of growth and experimentation in the market here. Here are a few reasons why it works:

 

1. Cost effective: For new businesses, drop shipping can help in saving the initial costs as well as later costs. It is a budget-friendly and easy-on-the-pockets business model, which can sail your business to new heights. For developing countries, this is a really good option.
2. Lowered risk: The risk of loss isn’t as significant in drop shipping as other companies because there is no stock left. A product is made only when the demand arises. For Indian companies, this can be helpful in not attracting huge losses considering the shipping and tax costs are also a lot.
3. Internet Penetration: In the last decade, internet penetration in India has scaled a very high margin which has made online selling a very big deal. People are using internet on their phones and the convenience has led to them to order things online rather than go buy them from brick-and-mortar stores.
4. No Inventory hassle: There is no unnecessary headache about where to keep the inventory and then aggressively market to make sure all of it is sold. It eases the pressure of selling as you are not directly responsible for production. India has a higher cost of goods and taxation, so dropshipping offers the solution where it’s possible to only produce as much as you can sell.
5. Automated Functions: If you notice, dropshipping functions can easily become automated which makes it easier to concentrate on other business aspects such as branding, marketing and business development. Functions like- placing orders, tracking orders, setting prices, performance review, promotions, ads etc can all be automated and don’t require you to manage them on a regular basis.
6. Purchasing Power: Another major development that has taken place in India is the increase in purchasing power due to more disposable income. People want to buy more and are aware of brands that are popular across the globe. For example- A few years back, did you imagine having a closet full of Manchester United merchandise? People are more specific and ready to spend now.
7. Niche Products Availability: Like the example above, bringing niche products to India is attaining power in your own hands. Electronics, merchandise, clothes, books etc become more of value because it is what the people exactly want. For example- if you are selling T-shirts with popular culture quotes or you are giving signed celebrity posters, it can make your business fly.
8. Supplier Language benefit: India is a great country for many reasons, one reason being that we are a land that speaks multiple languages. English, being one of our greatest strengths, helps us in interacting with many countries, thus, widening our market space. This leads to getting more options for delivery and purchase across and outside India.
9. Location Independent: You are saving on rent cost because you don’t really need to have an office. The ‘Work from Home’ idea can be put to use if you are an online seller because all you need is a laptop and well, the right business sense.

 

Reasons Why Dropshipping Wouldn’t Work

Despite the many advantages, if your drop shipping based ecommerce business isn’t faring well, then the reasons could be:

 

• High cost of goods and taxes can increase overall costs tremendously leading them into a loss.

 

• Sometimes, the shipping time can be more than usual because of inadequate transportation or not enough funding for smaller distribution channels.

 

• Since it is a new concept, customers might be resistant to it and question the credibility of the company if it is being delivered by someone else.

 

• Refunds and Returns become a difficult task as the entire process has to reverse. It is time consuming and may attract a loss.

 

• The fundamental reason drop shipping is not working out may be the quality of the product. Like every business, even drop shipping has to give something of value to the customers.

 

• If the seller’s website looks cluttered and the behaviour is unprofessional, then it might affect customer experience vastly. Improper coordination between the seller and the drop shipping company is also a show of unprofessional behaviour.

You can deal with all these problems by finding the right drop shipper and figuring out a way of building a good coordination between you and your drop shipper. Plan a good budget keeping in mind the shipping and taxation costs so you can still make a good profit.

India is a growing market and starting a drop shipping business could work wonders for you. Just find the right niche, and the right drop shipping partner! Here is how you can start your dropshipping business.

A wave of e-commerce across the Indian Subcontinent has cleared the pathway for new business models such as Drop Shipping. It can be quite confusing to grasp this at one go but we have made it simple and structured for you.

What is Dropshipping?

In its simplest sense, Dropshipping is a third party company that works in association with an online seller. The seller does not have a readily available inventory as the product is purchased by the dropshipping company only when an order is placed.

A normal business model would look like this:

• Customer places an order on the website.
• Once the order is placed the owner of the website (seller) finds the stock
• The product is packaged and shipped to end customer by the seller
• Payment is made by the end customer to the seller

A dropshipping model would look something like this:

• Customer places an order on the website
• Once the order is placed, seller informs drop shipper
• Drop shipper makes the product
• Product is packaged and delivered to end customer by drop shipper
• Payment is made by the end customer to seller which is cumulative of drop shipping charges

Pros and Cons of Dropshipping

This means that drop shipping is a third company that makes products on demand for online sellers so they don’t have to keep ready inventory and worry about production.

This way the online seller isn’t incurring any heavy initial investment costs which can be a great option for new companies to kick start their business. Due to the division of work, there is enough focus on all aspects of business operations then. There is no compulsion of location because it is an online domain where selling and purchasing is taking place.

There are some downsides to drop shipping too. Your reliance on a third party increases because they are doing the main part of the business. The profit margins are on a lower side as you have to divide the cost between your company and the dropshipper.

Every business is risky, it’s up to you which risk you choose to take. That makes all the difference.

You can read more- Pros and Cons of Dropshipping

Let us show you how Printrove makes it an easy process

f you are looking for a drop shipper and don’t know what metrics to consider, then let us guide you. It can be overwhelming enough to decide on drop shipping, then comes the next crucial step- finding the right drop shipper.

You must be aware of their performance with other clients, the quality of their products, what services do they provide- branding and tracking notifications, customer experience, delivery time etc. A lot needs to be taken into consideration when collaborating with a dropshipper.

They can make or break your business.

Refer to our post for more- How to find Dropshipping Wholesale Suppliers for Your ecommerce business

 

Aren’t Dropship Manufacturers, Wholesalers and Aggregators Same?

No, they are not the same even though some of their functions coincide. It is specific to the service each drop shipper is providing.

A manufacturer produces the products on their own and it depends if they have a drop shipping program. Some manufactures may not provide drop shipping services. If they do then it becomes a little easy on the pockets for the retailers.

A dropship wholesaler purchases a product in bulk from the manufacturer and then looks after the packaging and shipment process for online e-commerce retailers.

A dropship aggregator is an amalgamation of everything. He buys different products from multiple manufacturers and ensures in providing a good variety to the retailer for selling. If you choose an aggregator then you can save on multiple shipping costs but there is a high commission you will have to pay your aggregator.

Who Is Dropshipping For?

Since this kind of business needs you to have a divergent thinking pattern, it is most suitable for entrepreneurs that are looking to start out. However, if a seller is looking for immediate high profit margins then it can be a little disappointing.

New Entrepreneur: An entrepreneur who is just setting foot in the business world can find the drop shipping option viable since it is easier to manage business operations. When the workforce is divided correctly, then the dedication is channelled more powerfully. The drop shipper handles the production and delivery, the new seller can focus on marketing and business development.

Cost Saving Entrepreneur: The biggest selling point of dropshipping is cost saving because you don’t have any overhead expenses of inventory and warehousing. You are making the product only when there is a demand for it and this way you are not attracting losses. A budget specific entrepreneur will benefit most from this business and will be safe in the aspect of not incurring too much loss.

Out of the Box Entrepreneur: A creatively driven entrepreneur will be ready to experiment with this business model because honestly, it is about taking a chance. For entrepreneurs who stick to the rules and are resistant to change, drop shipping will not work out.

Expansion Driven Entrepreneur: If you are an entrepreneur that is wanting to sell a lot of product types under your brand name and are looking to expand extensively in the product segment, it becomes possible with drop shipping. When you provide variety, you get a good customer base and to manage that variety, drop shipping steps in.

Experimental Entrepreneur: If you want to try out a new product and seek validation for the same, you are taking a risk. You can reduce this risk by not having a huge stock ready for selling and instead dropshipping it. This way, if the product fails or requires alteration, you aren’t really incurring a heavy loss and your product requirements are managed by the dropshipper.

Dropshipping won’t work out only if entrepreneurs end up in bad marketing strategies or don’t find the right drop ship wholesaler. `

It is through meticulous planning and creating strategy that you can consider to start a dropshipping business. Coordination and patience are two important qualities you need to possess to float your business.

If you want to start a drop shipping company of your own then there are some things you should keep in mind. You can read in detail about them here- How to Start a Dropshipping Business In India.

Finding the correct drop shipper for your e commerce business is vital because you are placing a serious responsibility on them which affects your business directly.

Overview

• Acquaint yourself with the Supply Chain
• Decide your Drop Shipper Needs
• Search for Drop Shippers
• Build a Contact list and Contact Drop Shippers
• Order a Sample
• Order from Competitors
• Be a Part of Social Media Groups and Forums
• Attend Trade Shows
• Look for Order Management and Transparency
• Find how returns are managed
• Custom Shipping Notifications

How often do you come across someone who wants to share your workload? You are in charge of business development while the other company makes and delivers the product to your end customers. A Utopian concept, that’s what drop shipping is!

Unlike the failure of most Utopian concepts, dropshipping sails through the world of business remarkably well. There are drawbacks, certainly. But, for a person who wants to start young and invest carefully, dropshipping works wonders.

Let us enlighten you more.

Drop shipping And Its Benefits

Dropshipping business model is one that works without an inventory. Let’s make this easier- You want to sell t-shirts online and you get a new website designed for your store. You list all your products online, but you don’t have all the products readily available. A drop shipping company’s association with you will put the responsibility of getting the product ready whenever the demand arises. They will then pack the product and deliver it for you to the end customer. This way you aren’t spending on the initial inventory cost and you have someone who is only focused on the product while you can manage other business operations.

The benefits of dropshipping are many, some of them being-

• Low budget requirement
• Lesser business risk
• Stress free about inventory
• Division of work
• Location independent

If you are a new company that is choosing to invest smartly, then drop shipping is the option for you. Once your decision is made, a lot of questions arise. The first question being- How to find drop shipping wholesale suppliers for your e commerce business?

How To Find Dropshippers

It is crucial to decide on an ideal drop shipper because you will be depending on them to run your business smoothly. A reputable and trustworthy drop shipper can be found if you follow the steps below:

1. Acquaint Yourself With The Supply Chain

Before you begin to search for dropshipping wholesale suppliers, you should be aware of the supply chain and how it works.

Manufacturer – Wholesaler – Retailer (You) – End Customer

It is important to understand the industry supply chain because they determine how your product reaches the end customer and the pricing. If the wholesaler is also providing drop shipping services, then the prices might be lower. If they aren’t providing drop shipping services then it becomes expensive because of added factors such as increased shipping costs, extended travel time and longer wait time for customers.

It depends on your product too how the distribution channel will work. If they are fragile products it is advised to directly ship them to the end customer instead of all the middlemen. If they are durable and strong products, a longer distribution channel will be good and budget friendly.

2. Decide Your Dropshipper Needs

You need to be completely sure of your business goals and how you plan to communicate it to your drop shipper. Write down everything that you will be expecting from your drop shipping supplier and where you see your business panning out. Anything that does not align with your plan, can be easily dismissed because you are clear about what you want.

If you are expecting a higher profit margin, then your dropshipping and fulfilment process will have different supply chains. If you want to work more on brand image, the stress of product delivery can be shared with a dropshipper who delivers under your brand name.

Some drop shippers are looking to build a rapport and partnership with your company so they are driven in the same direction as you.

Options are many, you just need to know your goal.

3. Search For Dropshippers

You can use a variety of sources like software that list drop shippers or guides that direct you to them. The most convenient option is search engines as you will find drop shippers that are easily discover-able and you can read reviews about them.

Use the correct words with Google to reach what you really want to find. When you want to dig in deeper with your research, you will have to consider multiple questions that would arise in a person’s mind regarding drop shipping. Conversing with industry majors can also be a good way to get recommended dropshippers.

4. Build A Contact List And Contact Each Dropshipper

Once your research is in place you will have a list of drop shippers that come close to what you want from them. Contact each one of them personally because personal interaction will give you a definite idea of their functioning and if it is reasonable.

Discuss extensively on your business goals and if you see a sync in their response with your activities, you are good to go.

5. Order A Sample

The business is yours and you have to do everything in your capacity to seek out the best for it. Before you finalize on a drop shipper, we recommend you order a sample first to get a fair idea of how their customer experience will be and the quality of their products.

You may read more about ordering a sample here.

6. Order From Competitors

Find out competing drop shipping companies and order samples from both so you know the difference from a customer’s point of view. This will help you make an informed decision and give you a solid base for comparing and decision making. Do not make “price” as your only decision-making factor; instead, look at the product quality, the packaging, the branding, and the complete experience.

7. Be A Part Of Social Media Groups And Forums

Social media is much bigger than we estimate it to be. Over the past decade, its growth has skyrocketed in all spheres of communication which includes marketing and customer relationships too. Join Facebook groups related to your products and you will receive the latest news updates on your industry and easily make contacts that will lead you somewhere.

It would be good for you to also participate on discussion forums about your industry or check out forums of drop shipping companies and see what the existing customers have to say.

You will know the common opinion and also learn a lot about how this industry functions.

8. Attend Trade Shows

Being present at relevant events is extremely crucial to businesses because people might forget about your existence. If your presence is felt in trade shows and events, you will build more personal contacts and learn more about the industry than you could have ever expected.

It will help you understand which kind of people you can work with and establish a better relationship with them. It might be expensive but the time investment will be good.

These are some tips that you should keep in mind when you are looking for a dropshipping wholesale supplier.

9. Look for Order Management Process and Transparency:

It is extremely important for you to be in sync with your drop shipping company in terms of order processing, order fulfillment and cost factors.

Look for companies that are giving you real time updates on the orders, for example- orders that are shipped, still in progress, previous orders etc.

The progress can be updated in stages like ‘Received’, ‘Processing’, ‘Ready to dispatch’, ‘Shipped’. This way you have more control over managing your orders.

10. Find how returns are managed

It can be difficult to manage returns on products since there is a third party involved. Your customer experience is already compromised since they didn’t get what they wanted.

Nevertheless, look for a drop shipping company that has a fair return policy and it is cost effective too. It shouldn’t hamper your profit margin vastly.

If it is a print on demand company, inquire about their replacement procedures, if there are added expenses to print again or would they do it for free, reverse shipping charges etc.

11. Custom shipping notifications

Your overall brand experience needs to be perfect and for that you need to choose the best services that are available. Most times once the product is shipped, the end customer receives SMS from the delivery company and not the seller website. This can confuse them and question the authenticity of your brand.

Check with the supplier if they are sending custom branded emails and SMS notifications or the generic ones about the tracking updates.

Final Thoughts

There is no business that comes without risk. Drop shipping can be a little overwhelming to understand but once you fall into the pattern of functioning, it becomes easier and more beneficial than other business models. So, tread through the process of finding the right drop shipper very cautiously as this will either make or break your business.

It is always a good idea to be safe rather than sorry later. Ordering samples from your drop shipping company is a plus for your business awareness and responsibilities.

 

What is drop shipping

Why should you order a sample product

What should you look for in the sample order

How should you order a sample

 

Entering the e-commerce world requires you to have a fresh set of skills and business sense to deal with the digitally advanced interaction platforms. The potential risks in e-commerce are quite similar to offline businesses which is why you should have a contingency plan in place. Taking a chance can be very stressful and anticipatory, but if you aren’t taking a chance, then what are you even doing?

What is Drop shipping?

The e-commerce market has made it possible to have more kinds of business models and one of the most promising one is drop shipping. This is a model in which the seller does not have the products before an order comes in and when an order comes in he outsources the product from a drop shipping company and has it delivered to the customer. The seller does not have a ready stock and doesn’t even see the product when it is shipped.

To read more about drop shipping, click here.

Why Order A Sample First From Your Drop Shipper

Whichever designation you hold in a company or in a business of your own, being careful is the first thing about any business. Why? Because of the large impact the potential risks could have on you and your business.

Even with drop shipping, you are placing a huge amount of faith in your drop shipper with the primary function of your business – production and delivery.

So, it wouldn’t hurt to invest in the cost of a sample product instead of directly placing an order for your paying customer and also bulk orders. Additionally, you will become sure about a bunch of essential things when you order a sample.

What To Look For In The Sample Order

• First and foremost, the quality of the product that you are planning to sell will become determined once you actually hold the product in your hands.

 

• Place yourself in the customer’s shoes and understand how the entire process works out for them. This way you will be sure of the customer experience and if you want to change something.

 

• You will get a personal tour of how the fulfillment and shipment process works when you drop ship, which would help resolve all your doubts regarding drop shipping.

 

• You will understand if your drop shipper is trustworthy and can be relied upon. You can know what to expect in high demand scenarios and build a relationship with the drop shipper accordingly.

 

• You will be able to photograph the products personally and put it up on your website which would be great for marketing and brand presence.

 

• The pricing, tracking of the shipment, automated messages, your branding, packaging and more will become clear to you to confirm on the partnership.

 

How To Order A Sample

First of all, check with your drop shipper whether they provide sample orders before partnership. Every drop shipper has different methods of order placement. A lot of traditional manufacturers-turned-drop shippers might have some constraints on that, so it’s better to clarify beforehand.

Next, inquire about the process they have for placing sample orders – through emails, calls website forms etc. Look for any contracts they want you to agree on for placing the sample order.

Also, make sure about the prices of the products.

Printrove, as a drop shipping company, has evolved its process of placing sample orders. And, now, it is as simple and similar as placing orders for your actual customers. This is how things work at Printrove for placing the sample orders –

Step 1 Visit the Printrove website and register as a merchant with your email id.

 

 

Step 2 You will be directed to your Merchant Panel Dashboard which will look after every single aspect of your association with drop shipping like design, orders, revenue generation etc. By default, the account gets created on the Free plan.

 

 

Step 3 On the left side of the screen, you will find Orders. Click on “Create Your Own Order”.

 

Step 4 Under the “Create Your Order” section, you have to fill in all the details of the product, the design, number of items you want, etc.

 

 

Step 5 Once you have filled in the details, place your order and keep track of the shipment in the “Manage Your Orders” section.

 

At Printrove, the sample order placing process is exactly the same as the order placement process for your customer. The only difference is the pricing.

When you place an order without activating your account, you have to pay the regular price. Whereas, when you activate your Merchant account with ₹5000 and then place the order, you get access to the wholesale price which is obviously lower.

However, when you’re joining Printrove or any drop shipper company as a Seller, we’d recommend you to test their processes and the products before committing to anything further. Hence, you must first order a sample and look for all the points we’ve mentioned above. Once you feel satisfied about the experience, you can activate your Merchant account and start placing orders immediately for your customers.

Before anything else, your relationship with your drop shipper matters as they will form the major machine for your business.

You are now all set to begin with drop shipping and checking for sample products for your e-commerce store.

Until a decade back, e-commerce was only the unrealistic imagination of businesspersons but it has now become a reality. Along with its surprising growth, it has brought into existence some fascinating business models.

A brand that outsources its products and has them delivered under their brand name- that is drop shipping! Interesting, isn’t it?

For most of the people who enter the e-commerce industry as drop shippers, it starts as a side game. And, eventually, if they’re focusing well and doing all the right things, it becomes their major work, moving everything else to the side. Sounds like the perfect entrepreneurial life… but, hey, it isn’t that easy. This demands dedication and some smartness.

Here’s a quick view of the 9 drop shipping tips we have for you, explained later –

Tip #1. Find Your Niche

Tip #2. Handle Your Logistics

Tip #3. Get A Sample Of The Product

Tip #4. Establish Good Retailer-Supplier Relationship

Tip #5. Optimize Your Website

Tip #6. Marketing Is Imperative

Tip #7. Ask Suppliers For Reviews

Tip #8. Plan For Returns And Other Issues

Tip #9. Monitor Your Competition

 

71% of consumers who’ve had a good social media experience with a brand are likely to recommend it to others. According to The 2018 Omnichannel Buying Report, consumers spend 69% of their discretionary income to shop in-store. At the same time, Gen Z consumers spend 8% more of their discretionary income each month online than the global average. Despite the competition being so tough, e-commerce is posing as a threat to in-stores because of its rocketing growth.

Hundred mouths will speak hundred different things. And, we being the facilitators of more than 300+ drop shipping brands in India, have learnt about it through experience. Summarizing our learning into nine drop shipping tips, we are trying to throw some light on the parts of the drop shipping path that remains invisible for most people.

Here are the top drop shipping tips for e commerce entrepreneurs you must know –

Dropshipping Tip #1. Find Your Niche

This is the first decision you need to make as a drop shipper so make sure it’s a good one because it will either make or break your business. You need to believe in the product you are selling because if you don’t, it will show.

Find something that you are passionate about or that your customers would be passionate about, for example- Printrove drop ships regular products like t-shirts, phone cases, notebooks, mugs, coasters etc and the seller gets to choose his design. Here, design becomes personal to the seller and to his audience, and hence, he sells more.

Dropshipping Tip #2. Choose Your Product Wisely

It will be exciting and more profitable to sell everything that comes your way but you need to be very inquisitive about the price of these products and if the supplier can make them available to you anytime you want.

If you are just starting out, it would be recommended you choose a product that isn’t fragile and doesn’t require much technical assistance.

Dropshipping Tip #3. Get A Sample Of The Product

By ordering a sample you are not only checking the quality for yourself but also understanding the product’s dimensions, and the look-and-feel better. When you have sample products, you have more power over how to photograph it and how to make it look more appealing to your customers.

Your product descriptions will be accurate as you will have a first hand reference point. It will also help while writing or recording product reviews. You can make all the necessary changes or adjustments.

Dropshipping Tip #4. Establish Good Retailer-Supplier Relationship

This is a very self explanatory tip but we place special emphasis on it because in a drop shipping business, coordination is everything.

List down all the aspects of the business that you and your supplier need to consider and together land on an agreed sales strategy.

Cognizance of what is happening in your business is crucial and thus, communication with all divisions of your business is a must. Maintain absolute transparency with your supplier so there is mutual respect and trust.

Dropshipping Tip #5. Optimize Your Website

The first interaction you have with your customer is through your website. It is essential that you develop a user-friendly and automated website so both of you are benefited at the same time.

Refer to competitor websites and analyse how they are doubling sales with their ease of website navigation. Only once your website is uploaded with all the relevant information should you market it.

It would be a marketing failure if you lead customers to your website and it isn’t efficient enough.

Dropshipping Tip #6. Marketing Is Imperative

Buying, selling and delivering is just one part of your job but if you want to develop a strong brand presence, you need to be available to your customers all the time.

Your social media is your direct connect to the audience, so be sure to answer their doubts or just have a conversation.

When you personally acknowledge people, conversion rates are higher because your brand becomes more authentic and professional.

Dropshipping Tip #7. Ask Customers For Reviews

You can have the maximum number of ads all across the city but what truly gets a customer to believe you is real testimonials. If you don’t have enough product reviews then people will assume that you aren’t doing as great.

The conversions will be low if there is no one to testify that they have used your brand’s product and it has worked out well for them.

The easiest way to get testimonials to ask your customer for a feedback once the product has been delivered.

Dropshipping Tip #8. Plan For Returns And Other Issues

Just like any other business, drop shipping also has its set of potential risks like lost or stolen shipment.

Returns can be complicated because you don’t exercise direct control over what the product is and how it will reach your customer.

Nevertheless, planning for these hypothetical scenarios is a great way to control damage if it happens. Develop a policy framework with your drop shipper at the start so both of you are clear of the consequences and work harder at reducing risks.

Dropshipping Tip #9. Monitor Your Competition

Don’t look at your competition as a negative, instead look at what they are doing right. When you practice a balanced observation, it helps you learn and grow.

Observe how they handle their social media profiles, what campaigns they are running and what is their target audience’s response.

You will get a sense of what kind of products work in the niche and how should they be marketed.

 

Do you think you’re ready to take on this thrilling journey of drop shipping? No? Do you think you’ll ever be ready for it? Start your Dropshipping business right away!

Well, there’s no perfect time. You will learn and improve along the way. Take these drop shipping tips along for guidance, and make up your mind. Other than print-on-demand drop shipping, there will be no other easier way to reach millions of people and serve them with awesome products that you can design on your own. What do you think?

The many facets of the e-commerce industry give birth to new business models: Drop shipping, Print on demand, Warehousing and Fulfillment.

 

The growth of e-commerce industry

Understanding Drop-shipping

Understanding Print on Demand

Understanding Warehousing and Fulfilling

Which is the Better Option: Drop shipping and Print on Demand or Warehousing and Fulfillment

How it works for our merchants

 

The Growth of E-commerce Industry

India saw a catapulting growth in the e-commerce sector in the last decade and the reasons behind this are many. The value of e-commerce industry is expected to touch the 200 billion dollars mark by 2026.

An upward growth is predicted for Indian e-commerce industry which will surpass the US by becoming the 2nd largest e-commerce market in the world by 2034.

The sector has already established its success by allowing industry tycoons to build vast empires and experiment with consolidation. E-commerce is now seen as a long term business plan rather than an emerging market because the world has moved to digital.

Your products/services are easily accessible, available and convenient to purchase because the customer is ordering while sitting at home. You are providing the customers with maximum delight by bringing everything at their fingertips.

If you are someone who is looking to set foot in the e-commerce industry, it can be very intimidating considering the level of competition and the unfamiliarity of the digital space. But, there is not much to worry because along with difficulty of creating brand awareness, e-commerce gives you a million options on how to go about your business.

Let’s read about them.

Understanding Drop shipping

Why Drop shipping?model that works without an inventory. There are 3 parties involved: Seller, Buyer and Drop shipping Company. The seller owns an online store from where customers place an order. Once the order is placed, the seller buys this product from the drop shipping company which makes the product and delivers it to the end customer. The package can or cannot be in the name of the original seller.

 

Seller gets an order for a product

↓

Seller buys product from the dropshipping company

↓

Drop shipping company delivers the product

↓

Customer gets the product with original seller name (optional)

Why Dropshipping?

Most businesses have to use up huge amounts of their funds for the initial investment of space and inventory, but with dropshipping you are saving on that cost. It is cost-effective and easier to manage for new companies.

You will be able to afford a wider range of products and services since they will be outsourced from a company that already makes them. The risk level in dropshipping is minimal in comparison to other business models.

The Drawbacks

You have less control over the operation of the business since you are dependent on the third party to make products for you. There is definitely a profit but you need to decide the margins very intelligently so that you don’t shoo your customers always.

Another problem is that if the demand increases and your drop shipping supplier isn’t able to supply the products to your customers on time, it questions the efficiency of your business.

You can read extensively about the pros and cons of Drop shipping here.

Understanding Print on Demand

The term is quite self explanatory. Print on Demand is when the designs are printed only when orders come in.

Just like drop shipping, there is no need to keep a stock in place because even the products are bought based on the demand quantity.

Customer places an order

         ↓

Printing is done

         ↓

Shipped to customer

Why Print on Demand?

1. Less Technical Requirements: If you have outsourced printing then your Print on demand partner will look after maintaining the correct technology and printing system because of their expertise in the field. So, you don’t have to worry about the technical aspects of it.
2. It is similar to drop shipping so it would also be a good option to consider when you are beginning with your business model dimensions. There will be no excess inventory lying in your storage space. Even though the profit margin is less, you can ensure that you don’t bring upon yourself a huge loss.
3. Experimental Freedom: Since you haven’t already printed designs on your products, you have more liberty to experiment with the design and its placement on the product. There is a lot of space to try out new things since you won’t be investing as much. You can ascertain if it’s doing well based on the demand it garners. If not, you can move to try the next design.
4. Customization: When your customers are able to get exactly what they want, they like you. The option of customization of design as well as product is available for you as a seller, so you don’t have to depend on any ready made designs. You are able to personalize the product so the buyer is happy.
5. Saving Space and Environment Friendly: When you aren’t keeping a bull stock, you won’t be needing a storage space. If you are printing notebooks, then it becomes an environment friendly option as you won’t be printing more than required.

The Drawbacks

1. Your are paralyzed without your printing partner: If you are running a business that is reliant on an external source, it can be a little risky. Your business operations and smooth shipping will be stalled if your partner does not give you the right products on time and in good quality. However, if you’re handling the printing in-house, it’ll be fine.
2. Less control over demand fulfillment: If you are dependent on a third party to fulfill the printing demand, you will be helpless when there is more demand and not enough inventory of raw products to speed up the process.
3. Time Consuming: The one thing customers absolutely love is when they order and receive it immediately. Time is a very important aspect of business and delays are looked down upon terribly. Since you are printing on demand it will take a while before you can deliver your product. This can hamper your brand image.
4. Return Policy: You will be investing a lot in the shipment, both in terms of money and time. When there are returns on your product, your return policy framework should be thorough where you should add the situations where you will accept and won’t accept returns. This way you can ensure that you don’t attract a huge loss.

Understanding Warehousing and Fulfillment

Your inventory is stored at your warehouse or your partner’s warehouse from where all the orders you receive will get fulfilled. This means that this business model is third party logistics but it can be done individually too.

Seller receives order

↓

Partner packages inventory from warehouse

↓

Order is shipped to end customer

Why Warehousing?

1. Saves time: With a responsible warehousing partner, your packaging and shipment is looked after by them, so you are not lagging behind on schedule. You will get more time to concentrate on your marketing and business plans.
2. It is cheaper: If you have a warehousing partner then you won’t be needing a place and employees to run your business. You can handle all your operations from home and the warehouse takes care of the rest. Your business grows and hence you earn a good profit.
3. Saves space: You don’t have to build a physical office space to have regular business operations in place. Storing in a warehouse helps you track your stock and keep the business going.
4. Ease of shipment: The packaging and delivery are done at the same place so there are less chances of in-coordination. The more orders you ship, the more reasonable shipping rates you get. This way you save a lot of money.

The Drawback

1. Customer experience: Regardless of where your products are delivered from, the essential marketing and customer experience efforts rely on you. So you will need to invest a lot of time in that on your own.
2. Less control: At the end of the day, you are highly dependent on the third party logistics to float your business. You have less control over the packaging and delivery operations. There will be no inventory accessible to you on-hand.
3. Underutilized Inventory: If a product does not perform well, you are left with a huge stock inventory that won’t be used and it will be a loss for the business. Until your finished products are sold, they are still a huge investment.
4. Difficult without a partner: If the responsibility to fulfill the orders completely rests on your shoulders, then it can be a herculean task. Warehousing is better only when you partner with someone to distribute the work.

Which is the Better Option: Drop shipping and Print on Demand or Warehousing and Fulfillment

If you are a new store, then we recommend:

Drop shipping

Since you are just starting out, it will be an ideal choice to choose a model that will not eat up much of your capital investment. You will have more freedom to experiment and manage your expenses. You can fix your own profit margins if you market your brand well.

Print on Demand

It is similar to drop shipping so it would also be a good option to consider when you are beginning with your business model dimensions. There will be no excess inventory lying in your storage space. Even though the profit margin is less, you can ensure that you don’t bring upon yourself a huge loss.

 

If you are an established company, we recommend:

 

Warehousing and Fulfillment

You already have a lot of orders coming your way and warehousing would be a great option to deliver products on time. It helps you divide the delivery operation and regular business operation into different segments so there is equal attention on both. You just have to be careful about your reliance on a third party logistics partner.

How it Works for Our Merchants

Printrove is a combination of Drop shipping and Print on Demand model. We have a variety of products that are printed upon when there is an order placed on our seller’s store. Once the printing is done, we package the product and deliver it to the end customer under the brand name of the seller.

 

Seller gets an order

↓

Seller informs Printrove

(Printrove offers integration with Shopify and Woocommerce store to make the order placing process quick and easy)

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Design is printed on the product at Printrove

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Your Brand Packaging is also done

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Printrove’s Delivery partners deliver to the end customer

To find out more, you can visit our website. To start a dropshipping business, read this.

Let us know if this post has helped clarify the concepts of drop shipping, print on demand, warehousing and fulfillment for you in the comments section below. Also, if you need any help making a decision, we are here.