Dropshipping has been controversial for some time and you must have heard about it before. Some dream-selling gurus promote this business as an easy money-making activity and, on the other hand, some media present it as a major scam! However, this technique has been used for a long time and in many fields, without our being really aware of it. Here is an article which explains in detail the business of dropshipping and the reason why it is faced with various and varied controversies.
Reminder on dropshipping
Dropshipping consists of creating an e-commerce site to sell products belonging to suppliers and wholesalers. These are the same suppliers who will take care of stock management and delivery. Its advantage is that you do not take care of logistics or production and you sell their products in real time. As soon as you make a sale, you buy the product from your partner. You then collect a margin on each sale made. You are thus an intermediary between the customer and the supplier! You simply indicate to suppliers the delivery details of the end customer when an order is validated on your store.
Why do some people speak of a “scam”?
In fact, if dropshipping is considered a scam, it is above all because some dropshippers are not conscientious in the selection of their suppliers. Some sell products of poor quality, products that do not comply with the order or even worse, counterfeit items and with delays sometimes considered excessive. The very principle of Drop surfing vs. DropShipping, of reselling products and then buying them from your suppliers at a lower price in order to recover a margin, is used by brands on a daily basis. You just have to see the supermarkets!
So what is a good dropshipper?
To fully understand the issue, it is necessary to understand that a good dropshipper must above all respect certain prerequisites if he does not want his reputation to tarnish.
1. A dropshipper who tests the quality of his products
First, it is about testing the quality of the products you are selling. You will be able to select suppliers who sell quality products and not appeal to those who do not respect the orders or lie on the descriptions.
2. A dropshipper who finds suppliers in America or in Europe
Then, it is still recommended to use suppliers located in America or in Europe to ensure product compliance that the after-sales service is responsive, that delivery times are reasonable and, thus, limit the risk of returns. Due to defective or non-conforming merchandise. This is also a vision that the Dropizi solution puts forward. It pushes dropshippers to create a long-term business with interesting branding, quality and local products, a brand that stands out, etc.
3. A dropshipper who resells the items at the correct prices
In order not to tarnish your reputation, it is better that you resell your items at a fair price, without ensuring too high a margin. The goal is not to binge on your supplier by selling the products 60 times the original price, but rather to sell more for several years! You can also negotiate with the supplier a volume over a given period to create this margin without it impacting the price.
4. A dropshipper that offers fast delivery
Another good practice is to agree with each supplier on a delivery time or to ensure the speed and quality of the delivery. Today, Internet users are used to receiving products ordered on the Internet quickly. You must therefore adapt to these consumption habits.
5. A dropshipper who creates a brand around his store
Finally, as much as possible, you will need to create a strong brand. You must have your own identity, your way of communicating, your values; etc. It is also advisable to specialize in a specific theme in order to be quickly identified by customers as a reference in the field. A good dropshipper generally offers detailed product sheets in order to inform its various visitors as well as possible about the product concerned.
The process to get started in dropshipping
Nothing prevents you from negotiating with an American e-commerce site to resell their products, go to a store near you or go directly to an American supplier to negotiate with him. In order to start your activity legally, you need a professional status. You can choose to adopt any status such as micro-entrepreneur. A simple Siret number allows you to start your online activity. At the start, the investment remains very low, because you do not build up stocks even if certain budgets such as the purchase of the domain name, advertising expenses and others remain to be expected. In terms of site creation, a SaaS platform like that of Dropizi mentioned above remains the most suitable. Both in terms of price and handling. Without knowledge, solutions like Word Press or Magneto can quickly become complex to manage.
The elements to take into account
As you will have understood, the entire stake remains in the visibility that you bring to your products by bringing back qualified traffic. You must optimize the ROI of your advertising campaigns by choosing the right keywords, in order to attract prospects who convert. In dropshipping, Google Ad words or Facebook Ads often represent powerful allies, as well as targeted emailings.The creation of a strong brand around a very specific theme also remains one of the major challenges. Even if many tend to want to sell as many products as possible, it is recommended to specialize in order to target a niche market and become the specialist in a specific field. The number of referrals can sometimes hurt your sales, especially if you offer a little of everything, because it must not be forgotten: customers can get lost. Finally, consider taking care of the marketing of your e-commerce store: customer journey, user experience, number of clicks, etc. You will understand that the dropshipping that the media talk about is mainly based on bad practices. To find your place in this business and be aware of your actions, you must think about quality and the long term. With these best practices, you can effectively get started and be successful in this area