In recent years, with the improvement of the Internet infrastructure and the construction of a global logistics network, cross-border e-commerce has maintained a relatively high growth momentum, and the scale of transactions has been expanding. At present, cross-border e-commerce has been on the cusp of the capital market.
Dropshipping, a simple understanding is that the retailer does not need inventory, provides the customer order and shipping details to the supplier, the supplier sends the goods directly to the customer, and the retailer earns the difference between the wholesale and retail prices. No matter in jewellery busiess and other industries, dropshipping are a hit now.
The biggest difference between the no-source model and the standard retail model is that sellers do not need inventory and purchase products from wholesalers or manufacturers to complete orders based on demand. This model has great advantages as a unique sales model, and of course there are also disadvantages.
It seems a very simple direct sales model. Sellers don’t need to worry about inventory issues, they just need to directly find wholesales, factories, etc. online to pre-select the products they want to sell, do market research on the feasibility of the products, and then negotiate with suppliers and sign cooperation agreements. The supplier provides good product data to the seller. You can sell the product on your own website or on a third-party platform. At this stage, as long as you can find a suitable and reliable supplier, then you will basically solve the product.
Then build an independent website or open a platform store, and put the product on the website. Basically, your website's direct sales model will get through.
Tips: The website only needs simple configuration such as: payment function, setting freight, customer member management, order management, order email reminder, etc.
Let alone whether the subsequent independent website/platform orders can be made, many sellers only understand the superficial aspects of the Dropshipping model. If you do it, you may think it is not just that simple. You may have spent a lot of advertising fees. The website has issued a lot of orders, but the problem of product customer complaints makes you very embarrassed, and the problem of return makes you useless.
Advantage:
- Low barriers to entry.
- Whether it is a small business with only a few people or a SOHO, most of the time only a laptop computer and Internet access are required.
- The initial investment is small. The supplier directly helps you deliver the goods, you don't need to stock up, and you don't need to prepare the materials of the goods, etc.
- Build a foreign trade website with mall function, and it can cost several thousand yuan.
- As a seller, only purchase goods from suppliers after receiving the order payment.
- It is relatively simple to expand the business. Most of the cost only needs to invest time and energy in the operation and promotion of the website and subsequent maintenance of customer relations.
Disadvantages:
- You cannot grasp the true quality and user experience of the product. You can't experience the whole process from the goods out of the warehouse to the customer's receipt. I don't know how satisfied customers are in this process. After the customer receives the product, if there is a problem, he will directly find you instead of finding the supplier. Therefore, you lose control of the product and easily lose the trust of the customer.
- You may encounter many peers who sell exactly the same products as you, with mixed good and bad.
- The return may be difficult. Depending on the agreement between you and the supplier, the customer may be required to return the product to you, and then you are responsible for the return/complaint process yourself. During this time, it is difficult to satisfy customers.
You cannot control the quality/speed of transportation. Essentially, for direct transportation business, the transportation part is not within your control.