The Retail world has always welcomed new and advanced methods and tools, that expand the possibilities and opportunities for retailers. Online retail changed the way people looked at retail and now Dropshipping has brought in even more profits to the retail market.
Dropshipping is an effective way of shipping goods to customers via third parties. As a retailer one can connect with third parties like suppliers, manufacturers or other retailers, to directly purchase goods from them and ship it directly to the customer. This means that the retailer does not require to physically handle, store, stock or ship the products. Simply put, when a customer places an order on your retail platform, you purchase the order from a third party and they in turn ship it to the customer.
Why has Dropshipping become so popular?
Dropshipping brings in many benefits and advantages for retailers. The fact that a retailer does not have to worry about stocking or storing goods, and managing a vast inventory is probably the biggest advantage. Additionally, the hassle of shipping is also completely negated. Other benefits of Dropshipping include:
- Money Saving Retail Method
Dropshipping is definitely a great way to save money for retailers. Firstly, the capital investment is much lower as compared to traditional retail methods. As a retailer you don’t need to purchase stock in bulk, neither do you need to build a proper storage space for it. Additionally, you need to hire a lesser number of people, if at all. You can set up an online retail store from home, thus reducing the cost of setting up an office and employee management.
- Retailer Opportunity
Dropshipping has given many people the opportunity to start their dream of being a retailer. As mentioned above, anyone from anywhere can start a retail business without much investment. You don’t need to worry about managing a team or managing a warehouse, you avoid packing and shipping related hassles, you don’t need to keep track of extensive inventories, you negate the returns and inbound shipment problems and you can continuously offer a diverse range of products.
- Diversifying Options
Dropshipping allows you to offer a more diverse product range to your customers. Since you don’t have to purchase and stock products beforehand, your risk is minimized and product range is maximized.
- Hassle Free Management
The thought of running a retail business is lucrative but the many things that need to be managed often make people drop the idea. With Dropshipping you can easily manage everything as most of the hassles are cut down. You can focus on more important issues like promoting your brand, sales and marketing tactics rather than be in a constant fix of shipping and delivering orders.
On the Other hand
There are always two sides to a coin. While Dropshipping has brought in so many advantages there are some ‘not so great’ factors that may be faced by a retailer. Firstly, and most importantly, your customers are connected to you directly so even if the Dropshipping Company or supplier makes a mistake, the responsibility is entirely yours. You can only control so much but errors cannot be completely negated. Additionally, not handling large stocks may seem like the best option but a supplier is connected to multiple retailers and sometimes the products you require may not be available. While there are many tools that help you keep track of your supplier’s inventory, last minute changes may happen. Lastly, the competition in the retail industry has grown immensely as a result of dropshipping. As investment costs are minimal there are retailers who will be willing to sell products at extremely low prices, minimizing the profit margin for retailers in the same space.
The Age of Shopify!
Shopify, a Content delivery Network, has made a global impact and greatly benefitted the world of online retail market. It is a platform that allows retailers to build, design, customize their ecommerce platform, along with end-to-end management of all your business functioning needs. The greatest advantage of Shopify is that it brings to retailers a host of applications that further enhance the profits and productivity. 10 of the most popular apps offered by Shopify, include:
Oberlo allows you to start a dropshipping retail business with much ease and convenience. You can import dropshipped products from a host of third parties and add them to your product range, and ensure smooth shipping of these products to your customers.
Another great app that supports over 300 couriers globally and allows you to keep complete track over shipping activities.
Enhance your Facebook commerce with Chattypeople that lets you develop an AI Chatbox.
- Boost Sales
A great and effective app that enhances conversions and sales for your ecommerce business with the best cross sale strategies.
It allows you to create a user friendly customized loyalty program. There are multiple ways to engage with customers and encourage them to collect loyalty points.
- Better Coupon
Offer discount coupons to customers for following you on social media platforms or subscribing to your email list and increase your followers and customer base with Better Coupon.
It is a great outsourcing solution that lets you completely focus on sales and marketing and takes care of all other requirements. Most suited for a print on demand retail business.
- Bulk Discounts
Create multiple unique discount codes that can be used one time, multiple times or unlimited time! This helps you keep track of the usage of discounts too and helps you understand the conversion rate.
- Alt Text
It’s a great way to enhance your SEO for product images. It helps you keep off keyword spamming and offers alternative text to improve your SEO.
- Happy Email
Not a typical email marketing solution, Happy Email helps you send out welcome emails to customers after signing up and placing the first order. The emails can be sent from the founder’s desk or anyone else that you set up.