No More Stocks!

Once you start planning on online business, you will notice that you have only small investment or even don’t spend too much for the first inventories. Don’t worry. Today, we are going to give you an effective method to help you start up. The drop shipping.

no stock is a effective way of  risk management

What is Drop Shipping?

Technically, the drop shipping is the process of sending goods directly to your customers from suppliers who are third parties or “vendors”. This process is carried out without other intermediaries such as storing goods at your particular location.

Drop shipping is almost the same as reseller business that you may have heard so far. However, in the drop shipper case, the seller doesn’t stockpile goods, nor do they need to participate in the packaging and delivery process. The seller only needs to process orders received from the buyer from the supplier of goods. Furthermore, the supplier will send the goods to the buyer on behalf of the seller.

Usually the suppliers will provide various contents of model image or product photos, items description, and of course the product price. You could set the selling price based on the wholesale price and use all the various contents to promote it.

The drop shipping structure

What are the advantages of drop shipping

 

  • Small capital
  • Easy to run
  • Flexible location and sales time
  • The choice of products sold varies greatly

Wow! Doesn’t it seem so easy to start? Yup right. But keep in mind that even if you sell all the items on the supplier’s product list, you cannot ensure that your sales will increase. You must be very careful to determine what products you want to sell and the consequences. Please also check the articles below to help you determine your main product.

Conduct Market Research
Find Niche Market
The Secret Method of Store Branding

After you are truly confident in the choice of product, target market, and market conditions, the next step is to find a source of suppliers.

How to find a supplier?

A good supplier must be responsive, the price offered must be cheap, provide a clear commission (including special prices / discounts), can be trusted, has a shipping location close to the market, high product quality, has a lot of product stock, and does not seize customers.

To find a good supplier, you need to check some details such as:

  • List and price of goods
  • Payment options
  • Additional options
  • Shipping methods
  • Delivery area
  • Packaging details
  • Return policy

Keep in mind that the online store owners do not interfere in checking the quality of the goods and the process of sending. Thus, it is very important to check the suppler reviews on the internet, on social media and forums before you start contacting them. 

You must also be prepared to accept complaints if there are delays or other obstacles in the process of shipping goods, you must give responsibility to the buyer / customer. Especially if the product is not in accordance with the expectations of the buyer, you can get complaints and negative responses from the buyer. 

As a drop shipper must be skilled in selecting reliable suppliers with a proven quality and accuracy. 

Where you find a supplier?

Following is a list of online marketplaces where you can find major suppliers in Indonesia.  

Kaskus
Tokopedia
Shopee
Bukalapak
AliExpress
Ralali 

You can search for suppliers from social media. But it must be remembered, research carefully and find the best supplier for your business.

 

 

Next to learn : Drop Shipper’s Security Issues
Pervious Page: Is Your Online Business Legal?

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