Showing posts with label drop shipping. Show all posts
Showing posts with label drop shipping. Show all posts

Tuesday, November 26, 2013

Tips on How To Succeed In Drop Shipping At eBay Marketplace

One thing you need to know is that eBay is a very reputable selling and buying marketplace. Before you even consider drop shipping using this platform, you need to re-evaluate your competency in offering the services including those of your drop shipping supplier. The clients who buy goods and items at eBay expect nothing short of quality goods and services. The following are simple tips, which will make your drop ship business successful;

Research the products

It is important to research on the products you want to sell and find out if they are sold at eBay or they are sellable in this marketplace. There are thousands of products sold through eBay marketplace and choosing the “hot selling” items gives a competitive advantage over other retailers in this market.

You also need to know that there are many other retailers and also big companies selling same or similar products and the competition is high. You must model out a good marketing strategy. The market is highly competitive meaning that only products which have a good rating from consumer reviews at eBay or Amazon will be able to sell fast. If there are negative expressions from customers on the products, it means that you will have a tough time selling them.


Seek an eBay approved drop shipper

You have to look for a drop shipper who is integrated with eBay. If you get an approved drop shipper, your task is made easy. You do not have to find out if the products of the supplier are sold at eBay.

Monitor stock levels from your distributor

To avoid complaints which could damage your reputation, you should ensure that there is sufficient stock level from the distributor. Any complaints and negative comments you get from customers will affect your business and therefore, you have to set everything right.

Whether it is the availability of stock or the shipping process, they need to be offered satisfactory. When selling at eBay, you must monitor stock levels from your distributor. You have to get updates on the level of stock so that you do not sell products, which are out of stock.


Keep track of the shipment feedbacks

If you close a sale, then you have to follow-up on shipping of the items. It is essential you keep close contact with the customer and get feedback on their order progress. You may opt to provide a kind of satisfaction survey for the customer to provide feedback on their order shipment fulfillment.

Delay of order delivery and shipment will mean that you get negative feedback and this could lead to payment reversal like PayPal that can seriously damage your business success. Mistakes committed by the drop shipper distributor will end up affecting on your business meaning that your business will suffer from distributor faults.


Mediate issues of return and exchange of goods

If there are any issues which result to return and exchange of goods, you as a drop shipper retailer, you have to take a mediation role. You will need to engage the customer and apologize for any faults that are witnessed in the transactions, otherwise, all return and exchange issues come down to your business and not the supplier.

There are high expectations on the quality of products bought by buyers at eBay. The drop shipper you are dealing with should be competent and avoid any product faults or switch of inventory. If a buyer buys goods at eBay, he or she expects to get exactly what has been ordered.


A drop shipping wholesaler who will switch inventory and get you a substitute or another brand equivalent to the one you have advertised at eBay will only damage your business reputation. The customers are very particular with what they order and do not attempt to sell something different or similar unless you have consulted with the client and agrees to buy that product. 


In essence, as drop shipper retailer, you have to know that you are managing your business. You must think outside the box and ensure that you deal with issues proactively. The drop shipping business model is faced with problems which may not make it successful at eBay. Right from the quality of goods, through the shipment process to customer engagement, all these aspects must be emphasized.


The drop shipping culture falls short of competency and the most affected is the retailer. Since the success of the drop shipping retailer business is largely depended on how he or she conducts the marketing strategy and how the distributor offers the supportive services like shipping, if there are loopholes on the distributors’ side, they land on the retailers’ business. Understanding the eBay culture and drop shipping scenario can help put in place mitigation measures that can lead to a successful drop ship retail business.



How Much Can You Earn From Drop Ship Business

The question as to how much you can earn from drop ship business is not easy to answer but the most probable answer is that you could earn as much as you may work for. Drop ship business is not a magic that will give you easy cash and although this is not ruled out, the bottom line is that you have to work for it. There are lots of marketing tactics required as well a strategic business planning. You need to identify the right products to sell. You also need to have a good marketing strategy.

There are numerous aspects which will determine how much you earn in a drop shipping business and they are;

•    The marketing approach you apply.
•    The goods you are selling.
•    Competency of the wholesale distributor.
•    The margins of commission you get from every sale.

It is estimated that only about 10% of drop shipping retailers make money and this is because there is a big competition in the market. You have to put everything right as far as marketing is concerned. Marketing is the cornerstone in succeeding on your drop shipping business.


There are different ways you can market your products. You can create a website which drop-ships to the product’s suppliers. This means that you have to post content on the website with descriptions of products. The descriptions have to be unique from those of the suppliers and other retailers. In this case, the quality of content will market your drop shipping business. If you submit very informative and interesting content on the website, you will create confidence with your buyers and this translates to more sales.


In addition, you will also need to create a blog. Because managing a website may be costly for a beginner in this business, a blog would be appropriate. Hosting a professional blog may not be costly as hosting a website. In addition, you have to use social media marketing to create social signals that will help increase the ranking of your website or blog. This means that more traffic will be generated on the blogs and this is connected to the supplier’s e-store you have been allocated.


Moreover, you may also use other methods like email marketing in order to make follow up on leads that have bounced. Search engine optimization is very essential when you are doing drop ship business.


You also need to write a few articles per week about the products and relevant topics. These articles are posted in major directories and will help drive traffic in your blog site or website from where visitors learn more about the products you are selling. The quality of content submitted to the directory and authority site will also help install confidence among the buyers.


You also need to select sellable products. There are many products you can sell through the drop ship business. These items range from diet pills, cell phone boosters, and power tools, garden equipments like lawn mowers, home appliances, kitchen equipments and toys. You may search for the “hot selling” items from sites like eBay in order to know, which products you go for in your drop ship business.


Another aspect which will determine how much you earn is the drop ship company you deal with. The wholesaler you are dealing with must demonstrate competency in offering the services. Since the company handles the shipping, it is important that when orders are made, the shipment process is done in time.


Your business image will largely be determined by how professional the wholesaler executes the shipping process. In addition, the wholesaler should be able to provide timely information on stock levels. Selling a product in your drop ship e-store only to realize that it is out of stock is quite frustrating for the buyers. The wholesaler should have a data feed system where you are able to get updates on quantities of stock.


The margin of commission of the sales also determines how much you are able to earn. If you only get 2% of commission, it means that you will have to close sales of 1000 items per month in order to earn a total of $2000 in that period. The kind of products you are selling will also determine the overall commission amount. If you are selling used low mileage automobiles from Japan, you will not get the same commission as selling used children clothes.


In essence, there are many aspects which will determine how much you earn. The most important thing is identify the most selling products and do a lot of homework in your internet marketing strategy. This way, the returns will be good. Also remember to engage with a professional drop ship wholesaler who has sufficient stock and is able to deliver goods in time. The shipment process must be done professionally in order to build loyalty with your customers. These are the same customers who will make a repeat purchase. They will also spread a word-of-mouth of your business to other prospective buyers.


How do you Get the Right Drop Shipping Distributors

One thing you want to avoid is dealing with a drop shipper who is unreliable and will cause frustrations when you are doing your business. The internet is flocked with many scams, shoddy deals and the essence is; if you are not careful, you will lose money even before you start your drop ship business. If you are beginning trading in drop ship business, you certainly want to build a good name. This is largely determined by the services offered.

The reason why you have to engage with a primed drop ship company or wholesaler is because you are not the one doing the shipment, packaging and labeling. These aspects are handled by the company and your job is to seek customers and convince them to but from your store. When a customer buys from the store you are allocated, the order is forwarded to the drop ship team to initiate the shipment and receive the payment.


If the company does not ship the products in time or there is shortage of stock, this means that your customer will be frustrated. These are the things you want to avoid because you are just starting your business. There are different ways in which you can get a good drop shipper on the internet.


Whereas there may be outdated lists of drop shippers that will not give you good results, there are a few reputable drop shipping companies. The problem is that the common ones you may find on the internet are those that have already registered very many retailers. This means that you will be competing against thousands of other retailers selling virtually the same products.


However, with good internet marketing skills, you can still market your products and grow your drop shipping business steadily as long as you have identified the “hot selling” and unique products, which can fetch you cash quickly. There are reliable drop ship directories that provide updated information on the most reputable drop shipping wholesalers, which you can engage with.


You need to search for these directories online. You will also need to call manufacturers and ask them if they have wholesalers who sell their products. It is most likely that they will recommend the primed wholesalers who you can then contact and request drop shipping business opportunity.


The challenge is that you may get a wholesaler who will not offer shipping services. In any drop shipping, ensure that you do not handle the chain supply part of it. This can be very technical if you have to do both marketing and organize for product shipping. Moreover, you need to ensure that the drop shipping company you are dealing is very reputable so that it does not taint your image.


The list of items they sell must also be sellable not to invest your time and resources in products which are unsellable. You may also search for manufacturers from trade magazines. Not all distributors and manufacturers will be willing to offer drop ship arrangement.


In essence, you need to do a good research in order to find out the best drop shipping distributors and manufacturers who you can deal with. There are listing of drop shippers being sold on the internet and if you are not careful, you will spend a few dollars to buy the list only to find that it is useless and has not been updated for the last one year.


Drop Ship Business Model: the Right Business for the Financially Handicapped


Drop ship business model is a unique way of doing business because you do not need to have a lot of money to own a store. You are virtually allocated a virtual online store which you sell the products. Internet is offering many opportunities for those people who would like to do business and attain financial stability. Apparently, there are so many programs on the internet, which people can explore as business opportunities. Choosing the right business will determine how much you reap from this huge market. One thing which bars many aspiring business persons to pursue their dreams is finances. Opening up physical stores and stocking them with goods requires a substantial amount of investment.

This investment is scaled down to practically zero amount in drop shipping business because you do not need to set up a store. Through your wholesaler, you are allocated a virtual online store with goods. These are the products you have to sell. Since it is a virtual store, it means that you do not require space to stock or keep the goods. You sell them right from the wholesaler warehouses.


In addition, the drop ship company offers a professional online store with products descriptions, prices and other relevant information. Consumers visiting your online store are able to get all the information they want. The e-store is professional and this helps create confidence among the buyers. There are other aspects which are handled by your drop shipping company like receiving payments and shipping products.


It requires pretty good time to be able to handle shipping, packaging, and labeling aspects. In drop ship, these tasks are avoided and they are instead handled by your drop shipper. This means that you dedicate much of the time in marketing. This is why drop shipping may be likened with affiliate marketing but it is not. In drop ship, you have ownership of a business. You feel like you are selling your products.


Your store is your business though you do not physically handle the goods. They remain in the wholesaler’s warehouse and when you close a sale, you only have to contact them and the rest is taken care of. Marketing perhaps is the difficult task here. You need to generate visitors to your store. Increasing the readership of the store webpage means that you will make more sales. So the main question is where and how you get the customers.


Internet marketing is competitive. You are not the only one selling the products. There are many other drop shipping retailers and therefore, you have to make your store shine above the others. There are a number of ways you can achieve this. You need use the power of content. In internet marketing, content is regarded as the king.


You can create a website that covers topics on the niche market you are trading in as well as product descriptions. You can create different contents and post them in relevant directories and authority sites. This will enable you get backlinks that direct customers to your e-store. Backlinks are very essential in internet marketing.


Moreover, you can create a blog that will help you get backlinks to your drop ship retail store website. The blog can cover topics, news, trends and other information on the niche market. Social signals are also important in building a community of readers. Through Twitter "tweets", Facebook "likes", and Google+ "share", you increase the ranking of your retail store website on the internet.  


What Is Drop Ship And How Does The Drop Shipping Business Model Work?

What is drop shipping? This is an online business model in which the seller does not own a physical goods’ store but instead owns a virtual store and upon getting an order of a product, that order is transferred to the wholesaler who then ships the goods to the buyer. If you would like to venture into drop shipping business, it is important that you understand what is dropshipping and how works. This is an online business and there are many business models you can get on the internet. 

You may have retail store where you stock various products and you advertise them on the internet. Similarly, you may have services that you offer through the internet. Drop shipping is a business model where you actually do not have a physical store for goods.

It requires a minimum or little amount to start. In this business, you serve the role of a middleman between the consumer and the wholesale distributor. Practically, drop ship business has a zero investment because you will not be required to set up a physical store. In addition, you do not stock the goods yourself. There are five steps in which the business is done;

1.    First, you get your online store from the wholesale distributor
2.    You search for customers to buy products
3.    You qualify the customer to buy goods
4.    Tell the company that you have sold a particular product
5.    The company ships the goods to the customer and receives the sales price
6.    From the sale you earn a commission of the sold goods

Drop ship wholesalers provide an e-store where you sell products. This makes it convenient for you since you will not have to design a website, though may set a website for backlinking purpose. Searching customers and convincing them to buy products is perhaps the challenging task you have to do. You are a salesperson and must convince consumers to buy goods.

There are different ways you can do this and they include creating a blog site where you post content on topics covering the niche market and products you are selling. This will enable you build a community of readers who can be converted to customers. You also need to engage in social networks in order to create social signals for your blog site and the e-store website.


Social signals will help in ranking your blog site and drop shipping retail web page so that they are easily found by internet users. In addition, you may participate in forums that cover the niche market you are trading in. By participating in the forums, you build your expertise in the topics and create a pool of followers who would like to know more about your business.


This way, they are able to visit your store and see which products you are selling. In addition, you may consider posting articles related to the niche on major directories and authority sites. The aim is to increase the ranking of your store website on search engines. If you have many audiences visiting your site, the probability is that you will get increased sales and this means more commission.


When you get customers, you convince them to buy the products and then you order from the wholesaler and the shipping will be done by the drop shipper supplier. You will not handle the shipping process. Payment is received by the company and you get your commission though some drop shipper may allow you to receive payment.


Choosing the Right Drop Ship Products to Sell

One thing you have to consider in drop shipping business is the products you are selling. There are thousands of products you can find but it is important that you identify the sellable ones. In addition, when you are selling, you also need to have some background knowledge on those products so that you are able to engage the consumer in the buying process.

Because it is you dealing with the client, you will answer questions posed by the customers when they inquire more about the products they want to buy. It is important that you sell goods that you are passionate about. This means that you will be interested in knowing more about these goods and how they function, and operate.


If you are handicapped in providing more information about the products especially when responding to customer queries, you can likely to fail in convincing them to buy. You should remember that you are “acting” as the producer of these goods but only that the consumer does not know.


You are representing the image of the company you are selling the goods on behalf. Not all goods you may sell interest you personally and this means that you may not be passionate about them.  Therefore, you may opt for necessities like toilet cleaning products and trash can liners. There are products which you may not have interest in but they are a necessity for millions of people and have a high demand.


Items like jewelry, watches, DVDs, pet food, health and fitness products are in high demand. In addition, you have to check on the price of the goods. Too pricey products may limit the number of buyers and also may minimize the willingness of the customers to buy.


Moderately priced goods could attract high number of sales though you may again be discouraged by the commission you get out of a simple sale. Identifying a niche of products to sell could help you specialize in marketing those products. With a good knowledge on these products, you will be able to convince consumers to buy from your store.


Online Business Models: Is Drop Shipping Business Right for You?

There are many online business models ranging from auctions, affiliate marketing, to drop shipping. Earning online can be pretty simple only if you identify the right business to explore. With the different options available, it may not be easy to identify the right one. One thing which remains a challenge on many people is choosing appropriate online business to venture into. Drop shipping has been a popular business model for many.

In business, it requires resource inputs including time and finances to be able to excel. Apparently, many people face financial challenges when they want to start a business and this is where drop ship business comes in handy. In this business, you become a middleman to sell goods for a drop shipper company. This means that you are given an online store where you have to sell the products you have identified and when you close a sale, you earn commissions.


This may sound like another affiliate marketing thing. However, dropship is quite different though it takes some basics of affiliate marketing. You have to understand how to get customers visit your online store. This is the only way you will be able to influence them to buy the products. One thing with this business model is that the customer will not know that you are a middleman and therefore, the client has full confidence with you.


You virtually own the store and the goods you sell are not delivered by you, but by the drop shipper company. This means that hassles of shipping goods to customers are taken care of by the company. This allows you concentrate on the most important aspect of getting customers. Because you are provided with an online store, it means that you may not require setting up your website in order to sell the goods from there.


This also helps you in presenting a professional store where customers have no doubt about the products you are selling. Passion and flair is very important in any aspect. You must have the enthusiasm and sense of ownership of the business. Otherwise in any business, there are challenges and risks. With drop shipping business, most of the risks are eliminated and this is because you do not have to investment your money.


You are acting as a middleman and you are given goods to sell. With drop shipping you do not have to purchase and inventory, stock goods or pack and label. You also do not ship the products yourself. This means that you save time and money when you are doing this online business.


In essence, if you do not have a lot of money to invest in business and also do not have an inventory space, drop shipping is the right online business to do. In addition, if you are not sure what you want to sell, then this business model could introduce you to some of the best selling products on the internet. Despite the many advantages with drop shipping business, there are also cons. The aspect of wholesale price and loss of control are major setbacks when you are doing this business.