What is dropshipping?

Thanks to the massive development of the Internet and NICTs (new information and communication technologies), ways of selling exclusively online have emerged.

Although e-commerce remains the benchmark in this field, a new activity is attracting the interest of entrepreneurs: dropshipping. Discover with SeDomicilier everything you need to know about this online activity.

Dropshipping: definition

Dropshipping  is an online business whose business model involves three parties : 

• the merchant,

• supplier,

• the customer.

When the consumer buys products online, the e-retailer transfers the order to the supplier who takes care of the entire logistics. This includes the production and packaging of the requested items, as well as their delivery to the customer's address. In this tripartite exchange that is dropshipping, the seller benefits from a  margin on the sale of each product.

All you have to do as an e-retailer is create your dropshipping store, present the products, and attract customers to your platform. It is this operation focused on the online store which is the main point in common between dropshipping and e-commerce.

What are the advantages and disadvantages of dropshipping?

As a dropshipping business, you can reap several benefits from your business.

Benefits of dropshipping

When you dropship, you don't have to worry about inventory management or delivery. This being the responsibility of your supplier, you can concentrate on other more productive tasks such as marketing. Thanks to dropshipping, you can also explore various markets to offer more products to your customers. You can even create several online stores and specialize each of them in a specific activity.

Dropshipping also allows you to reside in the location in the world that interests you and to choose your working hours. You can manage each client from anywhere in the world with a stable internet connection.

Disadvantages of dropshipping

Despite its many advantages, dropshipping has some disadvantages. Depending on the intensity of competition in your business, you may have few product orders. In this case, your margins will not be high enough to allow you to achieve a good turnover.

Choosing dropshipping also forces you to live at the expense of your supplier. If it is unreliable, it could damage your relationships with your customers. You must then find suppliers who offer quality at a reasonable price and who respect product delivery times.

How to start your dropshipping business?

To launch your dropshipping business, you need to follow a few key steps.

Conduct market research

Before you start dropshipping, study market trends. This will help you discover the products that customers need and offer them later. You must also identify your potential competitors, and then analyze their strengths and weaknesses.

Also, pay attention to the selling price of their products and the marketing strategies they use to promote them. Doing this allows you to master your market and put together an effective business plan to dominate your dropshipping business.

Choose your suppliers for your activity

In dropshipping, it is the product you are selling that determines the supplier you will need to work with. If you're in an industry with a lot of competition in dropshipping, you'll need to list multiple suppliers. You must then chat with each of them. Ask them the sale price and delivery time for each product, as well as details regarding the payment process.

You must also address the “personalization of your packages” aspect. A supplier capable of personalizing your product is a real asset for your dropshipping business.

During your discussions with suppliers, also address the management of customer returns or lost packages. The goal of this step is to find a quality supplier, who facilitates your dropshipping business and offers it the opportunity to grow quickly thanks to favorable costs and perfect logistics.

Create your online store

To do drop shipping, you must create your online store and highlight your different products with engaging descriptions. To do this, use a CMS like  Shopify, Woocommerce, Wix, or PrestaShop. With these sites, you can create an ergonomic online store. Focus on a smooth user experience to keep your prospects on your online store and on unique product sheets to encourage them to purchase. If you don't know how to create a dropshipping store and import products there, entrust this work to an expert in the field.

Also, provide legal notices and different policies on your online store to inspire confidence in potential customers. GDPR standards relating to data protection require you to do so. Regarding legal notices, they contain crucial information such as:

• the address of your dropshipping business,

• the company name,

• the name of the company manager…

To inspire confidence in your prospects, you must domicile your dropshipping business at a prestigious address in Belgium and above all officially create it. For these different administrative procedures, SeDomicilier has the necessary resources to support you in your project of creating a dropshipping business.

Promote and communicate on your dropshipping store

To make sales, you need to attract customers to your dropshipping site. This is possible by implementing an effective marketing strategy. For example, you can create accounts on social platforms to promote your products and your dropshipping activity.

Facebook, Instagram, and  TikTok are excellent customer acquisition levers in dropshipping. All you have to do is work on your online presence or go through their advertising agencies to sell your products. The natural referencing of your site and Google Ads advertising are also useful for attracting potential dropshipping customers.

Practical tips for succeeding in dropshipping

To have a business that works in drop shipping, you must organize your daily work well by defining the objectives to accomplish and tasks to execute. Choose 2 to 3 online acquisition channels and tame them to find more customers online. You also have to do more than other drop shippers. This requires strong actions such as finding the right supplier, domiciling your business at a prestigious address in Belgium, or creating effective marketing campaigns.

You also need to build a great relationship with your customers and make sure they leave positive reviews on your online store. To do this, find a solution to each of their problems and ensure the effective delivery of their order thanks to quality after-sales service. Do not hesitate to contact SeDomicilier for assistance in creating your dropshipping business.