Tips on Online Business of Drop Shipping

Tips on Online Business of Drop Shipping

Online businesses are becoming a trend nowadays. Who wouldn’t want a cost-efficient business that is so portable it can be operated anywhere as long as you have an internet connection?

One of the most in demand online businesses nowadays is the so-called drop shipping. It is a business where you can sell items you don’t own. Instead, you will rely on third party wholesalers or manufacturers to ship orders to customers.

So how does drop shipping work? When a customer places an order from your website, you will receive the order and payment for the order. You will then either automatically or manually contact the wholesaler or manufacturer, issue a purchase order for the item and provide instructions for shipping directly to the customer. The wholesaler or manufacturer ships the product, and you earn a profit in the form of mark up from the selling price of the manufacturer or wholesaler.

You think that’s how easy is it? Think again. Here are some tips I researched since this business has picked up my interest lately.

Choosing your product to sell. You can start by asking yourself what products are you passionate about. To check on the demand of that product, you can use Google Trends to see how many people are searching for it in the internet. If they searched for it, then chances are they are interested in buying it. Next is to find suppliers of that product and check their ratings and reviews.

Consider also the weight of the item you’re selling as it costs more to ship to the customer if you have heavy items. If you’re located in UK, online services like Pass My Parcel offers a quick quote on the shipping fee to any country in the world, depending on the weight of the item.

Customer service must be top priority. The worst thing that you don’t want to happen is to lose a client because no one is answering to his or her queries. This is probably where most of the work is. If you are swamped with queries from customers located in different countries, you must consider hiring a virtual assistant to address customers’ queries. Look for one that is in the country where most of the queries are coming from so they would be on the same time zone. To save on communication costs, use free apps such as WeChat, WhatsApp, Viber or Messenger so customers can reach you and your hired virtual assistant for questions.

Build lasting relationships. Every business thrives on lasting relationships among stakeholders. In the case of your drop ship business, your primary stakeholders are your customers and suppliers. Your suppliers may give you great deals on their products such as big discounts or prioritizing your orders versus other buyers while your customers may repeat orders and can market your store through word of mouth.

Focus on marketing your store. Marketing your store through social media and pay per click campaigns is the lifeblood of your business and consumes most of your budget. Without it, you cannot get customers to visit your site and purchase products from your store. Brainstorm your landing page. Make sure all the necessary information are there and make it appealing and convenient to visitors who are potential buyers.

Next is to make an appealing ad either in Facebook or in Google Adwords or both that entices viewers into it. When the campaigns are running, make sure to track progress. Experiment and develop campaigns which generate a higher number of leads and change those that don’t.

Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

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