Shopify dropshipping business model for new ecommerce entrepreneurs

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Shopify dropshipping business model for new ecommerce entrepreneurs

Shopify Dropshipping

The best solution to handle your inventory

For many entrepreneurs, entering the ecommerce space can be too expensive and troublesome. Dropshipping is the perfect business model for new ecommerce entrepreneurs: The amount of capital required to fulfill orders can be a deal breaker when managing inventory and supply chains.

Shopify Dropshipping is a flexible way to run your store, in this article we will explain to you the advantages of dropshipping and why it is the best solution to sell without the hassle of managing inventory, packaging, or shipping.

When we decide to start an ecommerce 

business there are various steps to be followed in order to secure a successful business. 

The very first step would be to choose your product. There are many ways to find the perfect niche and encounter the “unicorn” product that has high demand and low competition, but it is important that you know your product so you can create the correct marketing strategy top reach your audiences. If you would like to know more please comment below.

Once you have selected your product it is time to find suppliers and manufacturers and

this is when Shopify Dropshipping becomes a cost effective solution to all the following steps that comes ahead.

Basically, Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells as “in stock”. This means that you can always have your merchandise in stock yet never see or handle the product or products you are selling. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s door.

The advantages of Dropshipping are numerous:

Less Capital Is Required – Probably the biggest advantage to dropshipping is that it’s possible to launch an ecommerce store without having to invest thousands of dollars in inventory up front. Traditionally, retailers have had to tie up huge amounts of capital purchasing inventory.

With the dropshipping model, you don’t have to purchase a product unless you already made the sale and have been paid by the customer. Without major up-front inventory investments, it’s possible to start a successful dropshipping business with very little money.

Easy to Get Started – Running an ecommerce business is much easier when you don’t have to deal with physical products. With dropshipping, you don’t have to worry about:

  • Managing or paying for a warehouse
  • Packing and shipping your orders
  • Tracking inventory for accounting reasons
  • Handling returns and inbound shipments
  • Continually ordering products and managing stock level

Low Overhead – Because you don’t have to deal with purchasing inventory or managing a warehouse, your overhead expenses are quite low. In fact, many successful dropshipping businesses are run from a home office with a laptop for less than $100 per month. As you grow, these expenses will likely increase but will still be low compared to those of traditional brick-and-mortar businesses. 

Flexible Location – A dropshipping business can be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and customers easily, you can run and manage your business.

Wide Selection of Products – Because you don’t have to pre-purchase the items you sell, you can offer an array of products to your potential customers. If suppliers stock an item, you can list if for sale on your website at no additional cost.

Easy to Scale – With a traditional business, if you receive three times as much business you’ll usually need to do three times as much work.  By leveraging dropshipping suppliers, most of the work to process additional orders will be borne by the suppliers, allowing you to expand with fewer growing pains and less incremental work.  Sales growth will always bring additional work – especially related to customer service – but business that utilize dropshipping scale particularly well relative to traditional ecommerce businesses. 

All these benefits make dropshipping a very attractive model to both beginning and established merchants. Unfortunately, dropshipping isn’t all roses and rainbows. All this convenience and flexibility comes at a price.

The mayor downside about dropshipping os the lack of “uniqueness” your product has. Since you are buying retail products that look exactly the same as any other brand using dropshipping you can imagine that when the time comes to sell you must stand out and shine in order to succeed in the fierce e-commerce business.

Which is why marketing is essential to guarantee your ambitious goals get to meet their destiny.

Marketing:

You can take your social media posts, web page content, SEO and keywords a step further by creating shoppable content, which is content that enables visitors to buy right away. That can include anything from strategically placed display ads within a social feed to additional tags that take users directly to a shopping cart to exclusive give aways and coupon discounts to engage new customers. These methods help you eliminate friction from the buying process.

Your shoppable content has to highlight your qualities and how these can benefit the customer beyond other competitors.  The best, most efficient and straightforward way to do this effectively without losing the engagement of your audience is through video ads.

Over the past few years, video has taken over the marketing world. Many marketers consider it the most effective type of content. And they’re right: The average user spends 88% more time on a website with video, and ⅓ of all online activity is dedicated to watching video. The amount of time people spend watching and engaging with video is only going to increase in the years to come.

By using video content you can simultaneously raise awareness about your product on an emotional, clear, valuable and factual level that no other marketing tool can achieve so quickly. Which is why most important established brands use this resource in all platforms to create an impact on society and become a necessity more than a commodity.

You can have your potential customers to get to know your brand, your product and your uniqueness in just a few seconds and create traffic that will buy instead of bounce to other pages. 

The only problem is that if you are not a video editor then making videos can be rather expensive and time consuming, the team of Octovid understands this very well: We have developed a user friendly app that allows you to create videos within just minutes for all social media platforms that allows you to create any type of marketing campaign for your business needs, goals and ambitions in any length and using all the products you have in stock without having to upload files or having to create unnecessary content from scratch.

Octovid has a wide range of beautifully and tastefully designed templates that can be customized adjusted in accordance to your branding that will make the creation process very easy and time saving. And believe it or not, since you pay for credits instead of videos you can create many videos simultaneously for the same price before you even consider which ones are best to launch live. You can watch the results of each campaign with analytics and edit any content to improve your content without having to pay an agency every time you need to make a change.

Once you see for yourself the power of video ads you will not go back to the time consuming very inefficient traditional marketing tools you find everywhere. Remember, you have no business until you have traffic, and to have traffic you must have an audience.

We will discuss more about this topic in the next post. Should you want to know more, our team of experts are always happy to get in touch. Comment below your thoughts or drop us a line and say hello.

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