If you are considering direct sales, of course you are not alone. According to Google trend, in early 2020, the search volume of \”Dropshipping\” reached a record high.
This concept is very simple: you list the products to be sold on your website. The product itself is manufactured and held by a third party. When someone places an order, the third party will transport them directly to consumers.
The ability to add inventory without processing production, inventory or performance of orders seems to be a dream. The success of WayFair et al. Based on the direct sales business, the success of well -known brands makes it more attractive.
But is it worth direct sales? Let’s explore some advantages and shortcomings to help you make the best decisions for your business.
The advantages of direct sales
1. Low admission threshold
traditional stores and online stores Generally, huge financial investment is required to develop, manufacture and procurement products. Additional costs related to inventory inventory, maintenance of entity, personnel equipment, and marketing to new customers will really be added!
The entry threshold for dropshipping is much lower, because you don’t have to worry in stock.
2. No inventory management
Traditionally, retailers pay production costs first, wait for delivery, and then deposit the product into the store or warehouse. If there is no product for customers when the customer wants to buy, the sales will be lost.
Inventory management also requires storage and processing costs-
Someone
must fold the shirt and put them on the shelves! And you may buy or manufacture a large amount of unwavering inventory, so it involves major financial risks. On the other hand, the enterprises shipped on behalf of them eliminated these risks. Third -party processing inventory, the product can be provided to customers on demand.
3. No need for physical stores or warehouses
Dropshipping eliminates the demand for physical stores -this means that there is no need to rent, no mortgage, no construction costs, no maintenance of maintenance, no maintenance Essence
4. Improve cash flow
Generally, retailers purchase products, wait for them to arrive, and then sell them to customers. SectionSince time, they have spent a lot of money but could not be recovered.
You can receive product payment while paying to the supplier or before or before. Essence This has made funds for marketing and growth.
5. Test new products with the smallest risk
Innovation is critical to maintaining customer participation, but he is afraid of investing in funds in unskilled performance records New products will hinder many business owners.
Dropshipping allows you to test the new product line without spending a lot of money. If the customer does not respond to the new product, you only need to delete it from your store!
6. Create passive income
Passive income can be obtained without daily work (although it really needs early work and continuous monitoring). Through delivery, you are likely to process other aspects when you automatically place orders and perform orders (even asleep!). In the traditional retail model, without your participation, the product cannot go out.
The disadvantages of direct sales 1. Fierce competition
The low -standard entry threshold for attractiveness also brings fierce competition. Other stores do not sell similar products -they sell the same products from the same third -party manufacturers. For competition, you must find other methods to stand out.
2. Lack of control The inventory is rarely through your hand, so you have no chance to ensure that the product is in the best state. If there is no quality control, you will put the reputation of the store in the hands of third parties. A group of inferior products may cause customers to be dissatisfied and sales losses. Unless you reach a special agreement with the supplier, you cannot use the packaging to make your store unique, including coupons to promote additional purchases, add thanks to encourage customers to loyalty, or custom boxes and envelopes.
The cost structure may also be very complicated, and it may change without notice. With the development of your store and establishing a good reputation, you can start to negotiate exclusive transactions with suppliers. But before that, your profit margin will be reduced, and the priority of suppliers will be reduced. High amounts of expenses will quickly eat profits, or forcing you to pricing products that are out of reach for customers.
3. Batch discount
One of the reasons for large retailers to sell products at such low prices is the scale economy. Because they buy so large, they have obtained a lot of discounts in the product and passed these discounts to shoppers.
You can say goodbye to batch discounts because you actually buy a product at one time. Before you generate enough sales to give you some negotiating chips, you will pay the fee required by the supplier. 4. Take off
If a variety of products are listed in your store, they may come from different suppliers. Customers may receive multiple parcels of the same order, which may lead to high transportation costs, waste packaging, confusing brands and annoying customers.
5. Competition to the bottom
It may be difficult to distinguish your store. Many stores try to compete in the price, but because the competition is so fierce, they find that the price they set is getting lower and lower. If you are not careful, you will sell a lot of inventory, but the price is too low that you will eventually lose money.
How to serve you on behalf of you
The successful direct sales began
Select the correct product and supplier
. The sloppy packaging or delayed delivery is not good for you. It takes extra time to review all potential suppliers.
How to decide which products to consign And customer service is very important for the success of the direct sales business. Because anyone can sell similar products, and you don’t want to compete in price, so you can stand out by establishing unique brands and providing high -quality services. Supporting the business related to your sales is a way. And because the profit of direct sales may be very meager, it is very important to transform the one -sex buyer into a return. You also need A attractive and effective website . Using WoCommerce to expand everything from marketing to bookkeeping, you do not need to work in your store 24/7 around 24/7. You can start direct sales at low prices and expand your store as you want.
Woocommerce Dropshipping extension aims to make the entire process carefree, allow you:
Automatically send an order notification to the supplier According to the supplier import inventory
Create a special locking account for the supplier and provide it with it and provide it with it and provide it with it and provide it with it and provide it to provide the supplier and provide it to provide the supplier and provide a special locking account and provide it.Order and transportation information and packing forms
Customized packing form to ensure consistency
Direct sales worth it?Yes, if you have appropriate tools.Woocommerce provides a perfect start -up platform for the direct selling business.Create an online store immediately to enjoy world -class support, and use thousands of marketing, payment and management tools.
Use woocommerce to start your direct sales store
