Yes, Dropshipping Still Works In 2020

by Mehdi BAH

Starting a dropshipping business is a good first step in your start-up phase. You can sell products to your customers, set your product prices and advertise your brand. You don’t even have to pay for the inventory until you sell the inventory to the actual customer. When you are ready to plunge into work, you can successfully build your brand.

What is Dropshipping?

Dropshipping is a business model that allows you to run your business without stock. Once you have received a product order, your supplier will ship your products from their warehouse to your customer’s door. You never have to worry about storing, packaging or shipping your product.

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We certainly don’t have to convince you of the many advantages of drop shipping. You already know them well enough. However, you may be interested in how the benefits can be increased significantly if you offer drop shipping products not only in your shop but also at the major marketplaces. We explain how this model works there and show you what you should consider.

SMALL EBAY AND AMAZON RETAILERS WITH LARGE SALES

Perhaps when looking at the offers of some eBay and Amazon retailers and online shops, you have ever wondered how it is possible that they can offer hundreds of different products shortly after the start? Where do these entrepreneurs get so much start-up capital to be able to store all these goods? Now you know the answer!

Many of these retailers use DropShipping and can, therefore, offer hundreds of products for sale on the Internet without owning a single one. Only when the end customer has ordered and paid for a corresponding product will the online retailer order the goods from the wholesale trade. Instead of buying and storing large quantities of goods at your own risk, all items offered remain with the wholesaler until the end customer places an order. Only then does the wholesaler deliver the goods. And not to the online retailer, but directly to the end customer.

This is exactly why the potential of this system is so huge and enables the creation of any size range with hundreds of products without having to buy a single one in advance. You can sell any product on the internet without having it in stock.

Regardless of whether you offer your goods for sale on eBay, Amazon, in price search engines such as Idealo.de or your online shop, you do not have to invest a cent in advance for purchasing goods, packaging or shipping. Each of your offered products remains in the wholesaler’s warehouse until they are successfully sold. Only after your customer has ordered and paid for the goods will the wholesaler pack them and send them directly to the customer. And the best thing about it: Your online customers don’t even notice anything because the wholesaler packs the goods completely neutrally and, if you want, even sends them with your delivery note.

DROPSHIPPING AND ONLINE TRADING: THE IDEAL PAIR

DropShipping works, we have just found it, so only when a customer cannot take the purchased goods home with him immediately, but instead sends them to him, as we know it from the furniture trade. With this basic requirement, we can immediately see that dropshipping and online trade go together perfectly, since here, just like in mail order, it is always the case that goods are ordered first and only then sent. Who the customer ultimately receives the package from does not matter to him as long as the delivery is on time and the goods are in good condition.

It is no wonder, therefore, that with the increasing spread of online trading, there are now more and more dropshipping retailers who benefit from the numerous advantages that this trading model offers them. You do not need to buy any goods in advance and therefore require almost no start-up capital. A warehouse is just as unnecessary as expensive logistics personnel or packaging material. If a certain product proves to be difficult to sell, the connected supplier alone bears the risk for this. And because you do not have to deal with the order processing yourself, there is enough time to deal with the range, customer service, and marketing of the shop and products.

But aren’t there other options that can benefit even more from dropshipping? We say “yes” and present you with a great opportunity.

DROPSHIPPING ON eBAY, AMAZON & CO.:

A GREAT OPPORTUNITY FOR COMMITTED ENTREPRENEURS

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Do you have to limit yourself to your shop when trading with DropShipping, even if it is still quite new and therefore does not have many customers? We say “No” and invite you to market your products where millions of wealthy customers are already waiting for you. We are talking about eBay, Amazon and other marketplaces that offer you the platform to get in direct contact with countless consumers.

A few years ago, eBay was prohibited from trading in products that were not in the merchant’s direct access at the time of listing. This meant that drop shipping at the online auction house was previously ruled out. In the meantime, however, the terms and conditions have changed. Since it is common today for specialized service providers, for example for branded goods manufacturers, to handle the entire sale through eBay, but of course these manufacturers are themselves the official sellers of the goods, eBay has modernized the relevant rules. Today, the goods may still be with another company, as long as you as the seller ensure that the items are shipped immediately after the order.

As a DropShipping retailer, you can easily meet this obligation by prompting your supplier to send the relevant item to the buyer immediately after receiving the order. You can find out what else you should consider if you want to sell as a dropshipping retailer on the major marketplaces using the following profit tips:

TIP 1: CONSIDER THE GUIDELINES OF THE MARKETPLACES

On eBay or Amazon, trading in products based on dropshipping is permitted. But before you start listing your items in other marketplaces, you should check the guidelines and terms and conditions to see if drop shipping is allowed and welcomed. It always depends on whether the respective operator requires you that the products must be in your access at the time of the setting. If this is not the case, there is usually nothing to be said against DropShipping. In cases of doubt, you can of course also contact the customer service of the marketplaces and get advice.

TIP 2: CONSISTENTLY TAKE ADVANTAGE OF PRICES

Many retailers offer their products on marketplaces. As a result, there is often a fierce price war here. As a drop shipping dealer, you enjoy a valuable advantage. Because you only incur shipping costs once, you are superior to many conventional dealers. Use this price advantage consistently and mostly pass on your favorable conditions to your customers. In this way, you undercut your competitors and achieve more sales and better sales.

TIP 3: BRING CUSTOMERS TO YOUR SHOP STEP BY STEP

The marketplaces are a great springboard for retailers whose own shops do not yet have too many customers. To do this, however, you also have to pay fees for listing your products and a commission on your sales. In the long term, it is, therefore, better to attract as many of the customers that you have won through marketplaces to your shop. You no longer need to calculate the costs of the marketplace for future sales and you can collect the profit on your own.

TIP 4: PREFER ADVANTAGEOUS PRODUCTS

The higher the shipping costs and the amount of packaging required for a product, the greater your advantage as a drop-shipping retailer compared to competitors who store, pack and ship goods themselves. You should, therefore, concentrate particularly heavily on goods for which this effort is above average. This is the case for example with, particularly heavy, large or bulky products. When planning your product range, you should take this into account when selling DropShipping goods on the marketplaces to optimize your sales figures, your sales, and your profits.

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