A Guide to Successful Dropshipping
United States remains the biggest market for drop shipping because of the highly competitive consumer market and the large number of suppliers actively importing products from manufacturers overseas.
The most common strategy used in the United States drop shipping market is to partner with a wholesale distributor and utilize a well known e-commerce system such as eBay or Yahoo! Stores. The wholesale distribution industry is competitive, which allows you to compare various services to find the best possible supplier. The criteria for choosing the most optimal distributor are often based on product availability, product prices, storefront integration, shipping services and service fees. Most operate on a one-time or monthly membership fee system, so it’s important to carefully research potential distributors before committing financially.
When it comes to establishing a storefront to communicate with your customers, there are a variety of strategies available. Certain drop shipping distributors have a built-in commerce system that helps you build a storefront website and will host it for you. The most popular method of sales is to operate a ready-made e-commerce storefront such as eBay. This has proven a successful strategy for many because they are simple to manage and tap into large online consumer markets. A majority of drop shipping distributors offer integration services to link their product catalog and order processing system directly to your storefront. Other alternative options include commissioning your own custom website or using open source commerce software. These alternative tools are excellent if you want a cost-effective strategy, but may require hands-on construction and technical management of the storefront site.
A United States business based on drop shipping must also be ready to tackle a variety of problems that may occur. Without any direct access to inventory or shipping, it’s pertinent to have a supplier who is ready to assist in resolving customer service issues. However, they may not be helpful in all situations. This is where a contingency plan based on using another supplier can prove helpful. Even small strategies such as having a small stock of products to cover inventory shortages can help your drop shipping venture maintain business success.