Dropshipping : the basics to launch your e-commerce business in 2022
Who has never heard of dropshipping? Used on marketplaces for several years now, it is a term that we encounter a lot in the e-commerce sphere.
All these new practices respond to the increase in demand brought about by e-commerce. According to a study reported by Forbes, by 2022 e-commerce will generate a turnover of over 6,000 billion dollars.
Dropshipping is an e-commerce sales technique that is shared between three parties : the e-merchant (you), the supplier and the customer.
The sale is made in 3 distinct parts :
- The customer buys a product on the e-merchant's platform,
- The e-merchant receives the order and, as he has no stocks, places the order with his supplier,
- The supplier receives the order and sends it directly to the customer.
One of the main reasons is that it allows you to sell quickly and at low cost. Indeed, the e-merchant will not have to invest in the purchase of stock, so he will pay less charges. Dropshipping will also save time in the whole supply chain.
This consumer trend has many advantages (and also disadvantages) for e-tailers (called "dropshippers")
The advantages of this practice :
- Lower investment,
- No salary expenses,
- No stock or order management,
- Easy to set up,
- Perfect for testing new markets.
- No control over shipments,
- Minimum delivery times,
- Difficult to manage returns.
The strategy to be followed by the dropshipper in order to succeed in his sales is the following:
- Position yourself in a niche market with high unsaturated demand,
- A constant investment in digital marketing, as this will be the only way to make yourself known,
- Have a firm agreement and a relationship of trust between the dropshipper and the wholesaler,
- Monitor customer satisfaction to ensure that the sales process goes smoothly,
- Have a good mindset, know how to be a leader in what you do.
Monstock is the stock and flow management solution that allows you to trace your orders, equipment or vehicles. Automate your actions from sale to stock removal from the warehouse, including returns and refunds.
For more information, contact the Monstock team !