Drop shipping business is the most popular way to get started with eCommerce industry in today’s time. Dropshipping is an order fulfilment method in which they don’t maintain inventory, just prepare the product, pack it and send it directly to the customer. If you’re looking to start your own eCommerce company, starting up with a drop shipping platform would be a great idea. It will be an exciting business with low startup cost and good margins.
The only drawback is that much of your business is out of your hands. On the other hand, it is the most profitable business, if done right.
The right time to start selling your products is when the product is selected, suppliers assured and your business is legally established. The next step is to decide how to sell your products to the prospective customers. There exist different sales options, but you’ll most probably pick one or a combination of selling on your own online store, eBay or Amazon.
Steps to consider while starting an eCommerce Drop shipping business:
There are five basic steps to start your dropshipping business.
Step 1 – Select products to sell
Step 2 – Find trusted suppliers
Step 3 – Set up your business
Step 4 – Evaluate your sales channels
Step 5 – Market your products
Daily Operations of Your Dropshipping Business
Your Dropshipping business should be well underway! From this point onwards, it’s all about maintenance and growth. Experience is the key to master e-Commerce retailing. As the business grows, you will probably find new methods and paths to fine-tune operations for better efficiency and increased sales. You will discover how to fix issues with suppliers, handle with customer service issues and market your business’s label.
Once all these steps are set, you have to start evaluating the sales channels.
Most popular and Rewarding Sales Channels for eCommerce:
1. Dropshipping on eBay
eBay is the well-known world’s largest auction site for physical goods online. Begin by deciding what products to sell, then source those products from a wholesaler that can guarantee quick and reliable shipping.
Volume is the key to successful dropshipping. Few sales will not give you a huge return, most dropshippers gain only a few dollars per sale. Elements such as pricing, marketing efforts, and timing can shape or shatter the dropshipping strategy.
The Pros of Selling on eBay
- Easy to Get Started
- Access to a Large Audience
- Less Marketing
The Cons of Selling on eBay
- Listing Fees
- Constant Monitoring and Re-Listing
- Can’t Customize Your Sales Platform
- No Long-Term Connection With Customers
- You’re Not Building an Asset
To learn more about selling on eBay, click here.
2. Dropshipping on Amazon
Amazon is the online retail giant, which stocks and sells a number of items, but umpteen of the products listed are sold by third-party merchandisers via Amazon’s website. Amazon also acts to help assist the sale and to resolve any problems that come up.
The Pros of Selling on Amazon
The advantages and benefits are same on Amazon similar to eBay. It’s easy to get started in Amazon. You get instant access to a huge range of audience and you don’t need to fear about your marketing or SEO.
Amazon provides their own fulfillment warehouses which is the most amazing benefit for the Merchants. This will allow Merchants to compliment their drop shipped products without bothering about packing, shipping, warehousing and delivery.
The Cons of Selling on Amazon
- Exposure of Sales Data
- No Long-Term Connection With Customers
- No Customization
To learn more about selling on Amazon, click here.
3. Dropshipping with Facebook
As an eCommerce entrepreneur, Facebook is the most fundamental platform for advertising your eCommerce business. It is quite popular and useful because many other marketing channels operate on similar systems to Facebook ads.
The easy and cost-effective way to sell more products is adding a Facebook store to your Dropshipping business. You can set up a Facebook business page by building a following and create organic traffic with product promotion. Running ad campaigns on Facebook can get you more people to your store without constraining them to travel to another website.
Connect your website to your Facebook store and make use of the platform to drive more sales. Do basic research for underrepresented Facebook pages and create a following for your business. It doesn’t take an immense Facebook ad budget to build a big crew of Facebook fans in a short span of time. It is easy and free so that customers don’t have to leave Facebook to make a purchase. And, the less checkout process brings in a higher conversion rate.
If you haven’t seen good results in your business, selling in Social media can be a great option for your dropshipping operation. You can get much higher revenue for every penny spent on creating your Facebook store.
The pros of dropshipping with Facebook
- Brand awareness
- Drive website traffic
- Targeted advertising
- Generate business leads
- Customer service and feedback
- Monitor and improve
The Cons of dropshipping on Facebook
- Time and Resources
- Skills
- Budget
- Negative Feedback
To learn more about selling on Facebook, click here.
4. Dropshipping with Instagram
Instagram has become the most favourite platform for businesses. It provides the advantage of being a less saturated market. It has immense benefits of utilizing this channel so that the market keeps filling up with companies.
Create a content strategy, use elements of high performing account to use Instagram for marketing, decide the composition that how and what will be shown on your page. Build a following organically. Make sure you post at least 4-5 times a week.
You have the building blocks for using Instagram for business, but learning something new can be daunting. Take your time and start getting comfortable using Instagram and settings. Remember to be strategic of what to post and who you follow. Having a clear idea about Instagram for your business by experimenting can surely keep you on track towards business growth and success.
The pros of Dropshipping with Instagram
- Instagram is all about photos
- Connects to Your Target Audience
- High Engagement Rate
- Post Your Contents Easily
- Visual Representation of Your Business
- Allows You to Respond Quickly
- Increase Your Reach
The cons of Dropshipping with Instagram
- Not Everyone Is on Instagram
- Limitations on Your Contents
- Advertising Is More Difficult
To learn more about selling on Instagram, click here.
5. Drop shipping with your own online Store
The best alternative to selling online with Third-party websites is establishing your own online store. This can replace sales channels like Amazon and eBay, but you can still have a mix of both the worlds. This is one of the most attractive sales channels for people who are interested in building a successful dropshipping business.
The Pros of Selling on Your Own Store
- More Control
- Easy Design
- Mobile Ready
- No Third-Party Fees
- Building a Real Business
The Cons of Selling on Your Own Store
- Less Free Traffic
- Take a long time to get off the ground
You can get your own Shopify Store or Woocommerce Store with us. Let us know, just in case!
Wrap up
At this point in time, you will be asking yourself “which platform to opt for my eCommerce business?” To choose the best one, you’ll need to ask more questions and evaluate your priorities. Prioritize whether you need High-profit margins or more exposure to an audience.
To expose your product to a larger crowd, Online retailers like Amazon or eBay and social channels like Facebook or Instagram can be used. These are effective channels which will cut your margin but get more sales quickly.
Secondly, have a long-term goal, control over selling your products. You can set your own boundaries and work independently.
Lastly, think about how you can serve better and bring value to your customers. Moreover, think which platform will provide you with the most value.
Evaluate the available sales channels for your niche, and start selling!