Shipping can be complicated
Posted: Wed Dec 11, 2024 8:26 am
If you work with multiple suppliers — as most dropshippers do — your online store orders will be fulfilled by different wholesalers that offer each product. This means you won’t have control over your supply chain .
Let’s say a customer places an order for four items, all from different suppliers. You’ll incur four separate shipping charges to ship each item to the customer, with no way to pass the cost on to the customer. Even if it’s cost-effective to incur shipping costs, automating these calculations can be difficult. Different wholesalers will also have different processing and billing structures. To avoid problems, it’s a good idea to limit your business to a single wholesaler when you’re starting out.
Limited personalization and branding
Unlike products from a manufacturer, dropshipping does not give you much control over the product itself . Typically, a dropshipping product is designed and branded by the supplier.
Some manufacturers may use your own brand label, but even then, the wholesaler you choose has the most control over the product itself. Any changes or personalizations usually require a minimum order office 365 database quantity to be profitable for the manufacturer. Furthermore, running an online store based on dropshipping makes it difficult to build your own brand .
Difficult customer service
Even the best dropshipping supplier makes mistakes in order fulfillment – mistakes for which you need to take responsibility and apologize to the customer. In standard e-commerce, if customers complain about the quality of the product, the speed of fulfillment or the return policy, you can propose a solution yourself. If we are working on the basis of the dropshipping model, solving the problem often requires contacting the dropshipping wholesaler to clarify the matter.
If you decide to dropship, check out different suppliers. Many promise but don’t deliver much. If you want your business to generate profits, your customers need to be happy.
Low margin
This problem is especially problematic when you operate in a highly competitive industry. When you are competing for customer attention, it can be difficult to achieve the desired profits, especially if you are just starting out. The profit will depend on the level of individually set prices and the number of transactions. Wholesale offers are usually based on the average monthly value of transactions. If the traffic to your site is growing, and with it the number of orders, the wholesaler will offer you its products at a lower price, thanks to which you will be able to set a higher margin. When choosing a supplier, ask for an offer that will include ranges for different order values. Also, remember that the ability of an online store to generate online sales is highly dependent on the marketing activities that drive sales.
How to start dropshipping step by step
Making the decision to set up an online store can be difficult. However, there are many wholesalers on the Polish market that offer dropshipping cooperation, so starting a business based on this online retail model is relatively easy. However, before setting up an online store and registering your business, you should analyze the available options and decide what and to whom you want to sell, how your future competitors do it, and which supplier you want to work with. Below I discuss a few steps that will help you start your dropshipping business.
1. Find your niche
Start by defining your niche and target audience. There are thousands of options to choose from, and choosing the right products to sell online is half the battle. Finding your dropshipping niche is an integral part of standing out from the competition, especially with so many dropshipping businesses out there.
Here are some things to consider before making your final decision on what to sell.
Define your interests, knowing the products you sell can make the process of managing your business easier. It will also help you build an image of an expert in your industry faster. However, passion is not everything.
Research the e-commerce market, if you have a business idea, check if the products you want to sell are searched for. To research niches with high potential, it is worth using Google Trends, the Keyword Surfer plugin and the keyword planner in the Google Ads panel. Then determine whether in a relatively short time (let's say a few months to a year) you can break through with the planned assortment. If the industry is dominated by big fish, it is better to choose less popular products. For example, on the Polish market, it will be difficult to break through in the household appliances and consumer electronics industry and provide a better offer than the largest players, such as Media Expert, NEONET, RTV Euro AGD, or Media Markt. The ideal solution is to choose a developing industry in which not many companies operate yet . A few years ago, such an industry was the CBD products market, which developed thanks to changes in legal regulations.
Let’s say a customer places an order for four items, all from different suppliers. You’ll incur four separate shipping charges to ship each item to the customer, with no way to pass the cost on to the customer. Even if it’s cost-effective to incur shipping costs, automating these calculations can be difficult. Different wholesalers will also have different processing and billing structures. To avoid problems, it’s a good idea to limit your business to a single wholesaler when you’re starting out.
Limited personalization and branding
Unlike products from a manufacturer, dropshipping does not give you much control over the product itself . Typically, a dropshipping product is designed and branded by the supplier.
Some manufacturers may use your own brand label, but even then, the wholesaler you choose has the most control over the product itself. Any changes or personalizations usually require a minimum order office 365 database quantity to be profitable for the manufacturer. Furthermore, running an online store based on dropshipping makes it difficult to build your own brand .
Difficult customer service
Even the best dropshipping supplier makes mistakes in order fulfillment – mistakes for which you need to take responsibility and apologize to the customer. In standard e-commerce, if customers complain about the quality of the product, the speed of fulfillment or the return policy, you can propose a solution yourself. If we are working on the basis of the dropshipping model, solving the problem often requires contacting the dropshipping wholesaler to clarify the matter.
If you decide to dropship, check out different suppliers. Many promise but don’t deliver much. If you want your business to generate profits, your customers need to be happy.
Low margin
This problem is especially problematic when you operate in a highly competitive industry. When you are competing for customer attention, it can be difficult to achieve the desired profits, especially if you are just starting out. The profit will depend on the level of individually set prices and the number of transactions. Wholesale offers are usually based on the average monthly value of transactions. If the traffic to your site is growing, and with it the number of orders, the wholesaler will offer you its products at a lower price, thanks to which you will be able to set a higher margin. When choosing a supplier, ask for an offer that will include ranges for different order values. Also, remember that the ability of an online store to generate online sales is highly dependent on the marketing activities that drive sales.
How to start dropshipping step by step
Making the decision to set up an online store can be difficult. However, there are many wholesalers on the Polish market that offer dropshipping cooperation, so starting a business based on this online retail model is relatively easy. However, before setting up an online store and registering your business, you should analyze the available options and decide what and to whom you want to sell, how your future competitors do it, and which supplier you want to work with. Below I discuss a few steps that will help you start your dropshipping business.
1. Find your niche
Start by defining your niche and target audience. There are thousands of options to choose from, and choosing the right products to sell online is half the battle. Finding your dropshipping niche is an integral part of standing out from the competition, especially with so many dropshipping businesses out there.
Here are some things to consider before making your final decision on what to sell.
Define your interests, knowing the products you sell can make the process of managing your business easier. It will also help you build an image of an expert in your industry faster. However, passion is not everything.
Research the e-commerce market, if you have a business idea, check if the products you want to sell are searched for. To research niches with high potential, it is worth using Google Trends, the Keyword Surfer plugin and the keyword planner in the Google Ads panel. Then determine whether in a relatively short time (let's say a few months to a year) you can break through with the planned assortment. If the industry is dominated by big fish, it is better to choose less popular products. For example, on the Polish market, it will be difficult to break through in the household appliances and consumer electronics industry and provide a better offer than the largest players, such as Media Expert, NEONET, RTV Euro AGD, or Media Markt. The ideal solution is to choose a developing industry in which not many companies operate yet . A few years ago, such an industry was the CBD products market, which developed thanks to changes in legal regulations.