How ecommerce Drop Shipping Business Model Works?

Drop Shipping is a ecommerce method where online store sells products to consumers.  Merchandiser moves directly from the wholesaler to the final consumer without handled by the retailer. It is a straight forward business model that requires store owner to work with supplier or distributor or manufacturer and ensuring the seamless supply chain. All you need is to build an online store that sells well and ensure the fulfilment process is running smoothly.

Drop Shipping is a viable business model because of the way it is setup. It is viable in the sense that you don’t need any initial start-up capital compared to other business model. Also, you don’t need warehouse to manufacture the product or inventory upfront or pack and ship orders. You are really facilitating the sale from the customer to the manufacturer who you are familiar with.

Advantages of Drop Shipping:

 These are the 5 reasons; you should do the drop shipping business,

  1. You can start with little or no money
  2. You don’t have to do the shipping
  3. You don’t need a comprehensive stock management
  4. You can select the price and make the profit
  5. It only requires internet and a device

So, create your own store in Shopify, Prestashop or any ecommerce platforms to sell your products. Here, we discuss to list your product in amazon seller central,

Identify the Product:     First step is to identify the product to sell online. You can identify one product or multiple products that you can dropship. And then replicate the process again and again. Search the products that are flash deals that go with trends of the season or best selling product or the product that has good product pictures that you can make profit on margins. Avoid the expensive items in dropshipping even there was a great deal for this. It is a huge risk of selling expensive product every single time. It is good to sell the items the sweet amount of price tag which is 20 bugs all the way to 150.  The disadvantage of heavy products in dropshipping is that gets damaged when it shipped. So, It is good to keep working at the site itself and find the policy you want to sell on online. The best thing is to find the top rated product and cheapest products that are available for sale now.

Setup Product Listing & Calculate the Margin:  The first thing you need before anything to do is you need a UPC code. You can buy UPC code in different places or buy in EZUPC.com in bulk or single. Properly assign the numbers and create bar codes for the product.  Then, Open on the website of sellercentral.amazon.com to list your product.  Put the quality pictures of product in the product listing. Finally, list the price that is going to be discounted on jumps that gets most traffic to your shop.

For ex, the price of the product from the catalogue of $10, you can change the price to $30. In that way, you can make $20 profit and do this for each product.

Finalize your Listing: The description of the product shall convince the customer to buy. The couple of sentences of description is good enough to throw it out in the market. The ball points are more important than the description. It doesn’t need to be filled with keywords or add important information that simply makes something that sounds good. If you want to change the shipping information, simply go to the setting and change your shipping model.

Receiving the Orders & Ordering the Product for Customer:  Now, you have listed your product and you’ll start get the customer orders in amazon’s seller central. Once you are start getting the orders in sellers account and what will happen is when the merchant failed, you have to sell them. Amazon does not fill them. You are not actually ship anything out. So, what you are going to see in your account is having more orders are unshipped or pending and the customer information. Now, what you have to do is print the customer label and get their customer address that way.  Then, Go back to the supplier’s page where we exactly dropship the product and order it that will add it your cart. You have your shopping cart in your supplier’s website and simply put in their address and not yours. Then, the company will ship to their address. That’s how your customer will get the product. When you make an order to your customer, basically choose the china post, because it handles free shipping. Finally, come back to your sellercentral and click confirms shipment as soon as you confirm shipment done in the supplier’s page. Sit back and collect your profits.

It is not only you can do this with one product the platforms; do this multiple products across different platforms. Basically, it is a kind of catching. There is so much opportunity and profit and it is really a great business model.

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