Dropshipping is a method by which online stores fulfil customer orders without actually having any inventory in stock. Instead of selling existing inventory, many online sellers with stores on Shopify or similar sites will order products on demand to ship to their customers after purchase. This eliminates the risk of unwanted stock going to waste as well as eradicating the seller’s need to pay for storage space, and can be a popular option for e-commerce businesses who wish to meet customers’ specific demands.
Starting a business using this model requires minimal capital, so it can be an attractive option for sellers who want to launch their business quickly or try something new without risk! As sellers only need to purchase their products after having received an order via their online store, they can respond directly to demand and therefore eliminate the risk of wasted capital and unsold goods. Business expenses are low as there is no need to pay overheads such as purchasing inventory or managing storage, and for sellers themselves, this model can allow for a huge amount of flexibility as they can run their business from just about anywhere, or even whilst on the move!
For the reasons listed above, dropshipping has become a highly popular method upon which many online sellers now build their businesses, however, as a fulfilment method, it is not always as straightforward as it may sound. When it comes to sourcing products, organising purchases of goods and shipping to customers, there is plenty of room for mistakes and miscommunications to take place, and for other issues to arise. That’s where we can help…
We can help…
Problems with inventory
As dropshippers don’t have their own inventory of stock, it can be difficult to keep track of the availability of their products.
– We can help you to communicate with the factories you purchase your goods from, keep track of what items they currently have available, and source items from new manufacturers when needed.
Problems with item quality, missing items, packaging and shipping
As a seller, you may find yourself taking the blame for problems caused by your suppliers. As dropshippers don’t handle any of their products themselves, this gives them little control over the choices made when it comes to packaging and shipping, as well as limited control over the quality of the products themselves. This can have an adverse affect on customer satisfaction and, in turn, the popularity of your online store. You may even find yourself losing profits if you have to compensate customers for faulty or lost items.
– We can help you find the best and most trustworthy suppliers; helping you to gather quotes, request samples, negotiate prices, check qualities, and arrange shipping on your behalf. We can even provide our own customised packaging to your products, making sure that your customers receive their orders in perfect condition.
Profit margins
Dropshipping businesses are easy and quick to start up. The downside of this is that, as a seller, you may find yourself competing with other dropshippers who are new to the market and are offering extremely low prices.
– To remain competitive whilst also turning a profit, you will need to offer your customers the best prices possible, whilst also having a unique selling point or something that makes you stand out over and above other sellers. To do this, you will need to make sure you provide a trustworthy and efficient purchasing and shipping process to ensure a high level of customer satisfaction. We can assist you in achieving this by sourcing local factories who can offer your products at the best prices, as well as by helping to facilitate all aspects of the shipping process to ensure that your customers benefit from the best possible purchasing experience.
Tackle communication delays
Another common problem with dropshipping is the slow pace at which communication can occur between sellers and suppliers, which can have a knock-on effect on a seller’s ability to provide an efficient service to their customers.
– We can help to speed up communication with your suppliers, keeping in touch with them when problems occur and managing any language or cultural barriers which may be causing delays.
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The team at Decentsourcing are expert in building and maintaining the connections all the way along the supply chain. We specialise in helping our clients liaise with manufacturers in China and surrounding countries, breaking down language barriers and helping to build trust and understanding throughout all aspects of the buying and selling process.
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Our satisfied dropshipping clients…
Dan is an Amazon seller whose store sells fitness equipment such as massage balls and fitness plan calendars.
The massage balls are one of Dan’s most popular products, and are made up of several different components, including balls in various different materials, nylon bags, zipper bags and insert cards, and Dan sources each component from a separate factory.
When Dan started out, he was ordering all his items on-demand from online stores such as Alibaba and shipping the items on to his customers. He found himself spending a large portion of his time trying to communicate and negotiate with the suppliers of his products, which was becoming extremely time consuming as he had so many different sellers to keep in touch with. Dan became concerned that this was taking time away from his marketing efforts, and that aspects of his business such as online promotion and advertising were falling by the wayside.
He decided to contact Decentsourcing to find out how we could help him to manage his business better. We took over the task of liaising with factories and suppliers for Dan; requesting quotes to secure the best prices for his products; procuring item samples to ensure that he was selling the best quality goods; negotiating with the manufacturers and organising shipping to Dan’s customers.
All of this freed up valuable time for Dan to focus on promoting his store online and gaining new customers.
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Marco uses his online store to sell teething toys for babies.
When he first started up his dropshipping business, Marco would purchase his products from AliExpress, using their default shipping service to deliver the items to his customers.
Marco was starting to receive complaints from his customers, who said that they were waiting for long periods of time to receive their orders, and that when the products did finally arrive, they were badly packed and had sometimes even been damaged en-route.
Marco got in touch with us at Decentsourcing to see if we could help him.
We sought out new manufacturers for Marco’s teething toys, sourcing the products directly from a factory rather than from trading companies as Marco had been doing previously. We then took over the packaging of Marco’s products ourselves, adding bubble wrap bags to ensure the teething toys reached Marco’s customers in perfect condition. We linked up with some major shipping companies to organise smooth and quick shipping so that the teething toys found their way to Marco’s customers quickly and efficiently.
Marco stopped receiving complaints from his customers, and he was so happy with the large upturn in sales that he asked us to bulk order the product on his behalf along with customised packaging. We now store his products in our warehouse and organise shipping to Marco’s customers all around the world!
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Decentsourcing can help with all your dropshipping needs
We at Decentsourcing are experts in the inner workings of e-commerce, and we know how to help your business run more smoothly.
Dropshipping can be the perfect fulfilment method for those wishing to start up a new business with minimal risk and with minimum overheads, but that doesn’t mean it comes without its challenges and potential for issues and difficulties. With our expertise, market knowledge and communication and negotiation skills, we can help you to mitigate any and all issues that may arise as part of your business’ supply chain. We can even help you to build and grow your business, giving you the potential for change and expansion as well as leaving you with the time and space to focus on the aspects of the business that matter the most to you.