Blog - Dropshipping. An effective way to build a business quickly

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Dropshipping has been around for quite some time. The popularity of this business model is due to the fact that it does not require significant investments in 'entry.' Dropshipper does not purchase the goods in advance, he does not need a warehouse. It pays the supplier only for the item that is already actually sold.
Dropshipping is not a rapid enrichment scheme, but a serious business model that online stores often choose. Retailers that practice dropshipping can quickly expand their reach to target audiences, resulting in increased profits.
Dropshipping allows you to earn a stable income, sell goods to customers around the world without worrying about inventory, delivery or return.
Price and profit
Dropshipping is good because no one limits the seller in the price he sets on the product. Profit is his business.
After the customer places the order on the dropshipper's website, he collects all information about the order (item number, quantity, delivery address) and transfers it to the supplier, who must pack the product and deliver it within the agreed time frame.
Choosing a supplier is the most responsible and serious stage in any business. Business success depends on the quality of the supplied goods and the obligation of the supplier. Therefore, clear fulfillment of contractual obligations is the basis of business relations. When choosing a supplier, it is worth finding out its history in advance, who it is and where it comes from. It is often advised to go from the opposite and choose the supplier who sets as many conditions as possible to start working with him. Since he wants to clearly understand who he will work with.
Although delivery is the responsibility of the supplier, it must be taken into account when calculating the price at which the dropper will sell the goods so as not to lose profit. Often, if there are several items in the order, the delivery cost of each item is calculated separately and is based on the logistic data of the feed (weight, volume, size).
Since the dropshipper buys goods with a wholesale discount, which usually varies from 20% to 60%, his earnings are the difference between the price of a retail and an online store. You can preliminary estimate revenue using the formula: profit = (traffic to the site x 0.02) x (average order value x 0.2).
After the dropshipper finds suppliers for his online store and establishes partnerships with them, he gains access to product catalogs. Working with partners through the DaehanTrading site, the dropshipper is able to set up a direct connection between the online store and the supplier's site through the API, integrate product data and create automatically updated feeds.
Advantages and disadvantages of dropshipping
Dropshipping is a flexible and low-risk business that allows you to collaborate with several wholesalers, distributors and suppliers. Of course, this popular e-commerce method has its advantages and disadvantages.
The minimum cost of starting a business allows this model to be used by both beginners and those who want to expand the range of their online stores. In addition to easy and low-cost entry into the business, the dropshipper does not need to think about where to store the goods. He is not worried about the 'freezing' of funds in the goods, excess stocks, storage and seasonality. To start a business, it is enough to buy a domain, pay for hosting and order the manufacture of a website or online store.
The disadvantages of dropshipping, first of all, are considered: low profitability, lack of control over the quality and quantity of goods in stock, uncontrolled delivery costs and high competition.
Control of Daehan Trading Co. Ltd
Daehan Trading specialists help dropshippers in finding suppliers who before that undergo strict selection and verification against specially developed criteria for assessing their reputation. Manufacturers can easily load to the common database of Daehan Trading partners.
Daehan Trading Co. Ltd checks: product quality inspection protocols, factory certificates, financial terms of the transaction, minimum order volume, production capacity of suppliers.
Forget about large inventory, shipping, or handling returns! With our marketplace, you can find worthy and responsible suppliers and partners.
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