The biggest advantage of dropshipping is that you don’t need to invest heavily from the very beginning. There will be some startup costs, but you won’t need to invest millions of dollars to start your online business. since you sell using the dropshipping business method, all the products will be stored at your supplier warehouse, saving you lots of money on maintaining stock in a warehouse.
Pros of Dropshipping
- Not much capital is required.
- It’s simple to manage
- There are few overhead costs
- You can sell a variety of products
- It’s easy to expand
Most first-time importers put greater emphasis only on framing a PO (Purchase Order) agreement and start assuming it as a contract. You need to keep in mind that in spite of including many valuable provisions such as late shipment penalties, a procedure to deal with rejected inspections, and so on, but it is not exactly a contract. You can’t win a case in a Chinese court by showing the terms written and signed in your PO agreement as it is not a contract according to the Chinese court. To be on the safe side, it is better to have an OEM/ODM agreement along with a purchase order.
Retail Expansion Strategy for the New-Age Dropshippers
Providing a quality product line is simply not enough. You need to put your business out there with a targeted marketing strategy to get noticed by potential customers. Marketing your business with social media opens a whole new line of communication to the public. And it’s one of the easiest and most cost-effective ways to promote your shop. It’s also the perfect way to interact with both current and potential customers, giving them the chance to ask any questions they have about your company. social media has quickly emerged as a fast-growing sales channel, especially if you already have a large following and established brand presence on Facebook, Instagram, or Pinterest.
Dropshipping is mostly based on impulse buying. As a business owner, you simply need to market your products properly. It is the best mantra for maintaining a steady flow in your dropshipping venture. Do remember, anything can sell if displayed in the right way. Rather than raising your inventory costs by packing your warehouse with an unpredictable product, test it out with a trial period using dropshipping. More than just discovering if it sells or not, you’ll also have a better estimate of how much it sells for, giving you a more accurate number of what quantity to buy for your initial stock.