Dropshipping from the seller perspective
The dropshipper is a good deal for the producer and the supplier. He does the work of the sales and marketing departments: he looks for customers, promotes the product, invests his time and finances in its advertising. It is profitable!
The more dropshippers sell the supplier's goods, the faster the goods turn over, the more popular the brand becomes and the bigger the presence on the market. The dropshipper has his own online shop, social media accounts, he is interested in sales and customers. Thus, the supplier's goods are offered by several marketplaces, and experiments with promotion and advertising costs do not concern him. In a highly competitive niche, the goods are presented online by different companies. This is profitable!
At the same time, in order to avoid dumping in the network of its dropshippers, the supplier has to control and recommend prices below which they should not go. This is a disadvantage.
Dropshipping is not perfect and has its pitfalls.
The seller relies entirely on the 'purity' of the supplier. Even after you have tested the product, you never know what or how to send it to your customers. It is difficult to tell whether a product's quality matches its description and whether it is real just by looking at the product catalogue. You have to trust the information provided by the provider. This is a risk.
It is advantageous to work directly with a product manufacturer or dealer. However, you will often run into middlemen who are not responsible for the quality or the apparent availability of the goods in stock. The earnings of dropshippers are minimal because they buy back the goods. This is a disadvantage.
Image losses are undesirable in any business. The dropshipper has no control over the delivery process. If the supplier makes a mistake, sends the wrong product, packs poorly, or delays delivery, a dissatisfied customer is unlikely to return to the seller's website. This is a disadvantage.
Running a business
Starting a business and managing it are two big differences. To start an e-commerce business based on dropshipping, it is first of all worth doing extensive research: check the competitors' market, find suitable products, study suppliers.
Over time, you will have to take on issues: marketing, search engine optimization (SEO), online shop visibility, product quality and customer support.
By focusing on the expansion and development of the business, the dropshipper gets a smooth increase in profits with a small investment.
Daehan Trading Co. Ltd is dedicated to finding profitable niches for its partners and customers. Daehan Trading's marketers analyse the competitive environment and develop business-specific marketing plans.