Dropshipping business is a retail implementation method where the seller receives the customer’s order, purchases the item from a third party, and consigns it directly to the customer from the third party without keeping the product in stock.
What actually happens is that in this business model, the seller forwards the orders and the given shipment details to a manufacturer, a wholesaler, or a fulfillment house which thereafter consigns the goods directly to the customer. This means the seller directs the merchandise and retailing but have no knowledge about the quality of the product and has nothing to do with the storage and inventory.
When we talk about traditional businesses, they need all types of inventory like a warehouse, staff, packaging items and machines, vehicles to ship, and a lot more. This is the main difference between dropshipping and the traditional retail fulfillment method. Shopify, Magento, Etsy, and many marketplaces use this business model
Pros of Drop Shipping Business
Anything new to business comes with some new and exciting benefits. Here are some:
Less Inception cost
When you adopt a dropshipping strategy, you need not invest capital in any kind of physical inventory like storage, staff or machine for packaging, vehicles for distributing and all the things required in the traditional retail implementation methods. This lessens the cost of all the inventory leaving you just to make advertisements of your store by different means like ads in paper, television, social media etc.
Broader range of products
You can offer a wider range of products including different colors and sizes of the product to your customer with drop shipping. As you have to consign the products from a 3rd party, you can use a number of third parties with allotting specific products to each of the parties. this will give your customer a broader range of products with different qualities and a wide variety in size, color, cost, etc. of the product.
Dropshipping provides flexibility to many facets of the retail business. You can operate this business model from anywhere, offer many types of products and can change its offering easily if market preferences change as you have to work just depending upon yourself instead of getting dependent on any kind of salary to be given to the staff or investment made on inventory.
In this business model, you are using a third party for handling, packaging, and distributing the products hence you are not consuming your time in the entire shipping of the product, which leaves you with free time for making contact with the wholesalers who can provide quality products at affordable cost. Also, you can focus on marketing and advertisement of your website and store.
Testing new products without any risk
When adding any new product the risk of selling will always be in the background for you are not making any kind of true investment with drop shipping. In case any product, either purchased by a retailer in stock or by a consumer, is found to be defective or inappropriate according to the customer, the entire risk and blame go to the supplier, not to you or your store. So you are totally safe from this perspective.
In supply chain management every time you buy the product, it gets in touch with extra charges like Ocean freight services port operations, FTL and LTL services, warehouse employees, the storage, machines, and vehicles. But with this business model, you get rid of all these charges and hence, the cost of the product becomes less attractive a number of people.
Now let’s talk about what are the solutions for dropshipping business?
The rapid growth of dropshipping business model brings in great competition, for adopting this model will let you contend with a low-profit margin. For that reason, you need to choose a right platform to support your dropshipping strategy. One of the most used and popular eCommerce platforms is WooCommerce it is a method to ready open source eCommerce platforms built on WordPress. AliDropship, WooDropship, WP Amazon Shop, Dropshipme, etc., are some of the successful dropshipping online stores that use WooCommerce as their ecommerce platform.
You will get it better when you go through the following features of using WooCommerce for your dropshipping business:
When you are making some deal with some ecommerce platform like Shopify, BigCommerce, etc., they can do away with your site and products in violation of any of their terms but with WooCommerce, you fully own your store, products, and the content.
Dropshipping retailing using WooCommerce scales steady and rapid for fulfillment of the order is independent of the size of the physical location or the staff needed to ship out an order.
WooCommerce allows you to make an uninterrupted and safe connection between your fulfillment house and the shipping of the product to your customer. Also when the order is placed it automatically notifies the supplier. It also assigns specific products to each supplier. And all these things are made easier with WooCommerce dropshipping extension.
WooCommerce allows you to sell anything very easily. From physical products and digital downloads to subscriptions, content and even appointments, you can sell anything from anywhere via WooCommerce.
WooCommerce and WordPress are completely free, for it takes nothing for your sale. However, you need to pay $49 USD per year for WooCmmerce extension. On other hand, other platforms charge around $15 USD per month. Which one will you prefer, paying $15 USD per month or $50 per year? Clearly, you found WooCommerce cheaper and affordable.
It is normal to have queries regarding the products shipment or the entire functionality. Your customers can interact easily through live chat support for all paid extensions. You can also take meetups, Facebook groups, slack communities and many more.
Building your Drop Shipping business with WooCommerce
Once you decide to build your dropshipping business with WordPress and WooCommerce you need to begin with some fundamental steps i.e., your store’s Foundation here are those steps:
Choose Domain name
A domain name is a URL that provides the location to your ecommerce platform like https://stromonic.com, that your customers will use to access your website. Once you decide your business name, choose something easy to remember associated with your business name as your store’s domain name.Register Your Domain Name
Choose a Web host
A web host is a type of internet hosting service that provides your website accessibility via the world wide web. A web host keeps your website files and make them visible when someone types the URL, i.e., the site address. A good web host provides your foundation fast, secure, reliable and stable online store. Stromonic is one of the trusted and reliable hosts which we would recommend going with.
Stromonic: Stromonic is a managed WordPress hosting platform, combining the fastest network and technology in the world, and paired it with the best engineering team and the most experienced WordPress developers in the industry.
Its hosting platform includes:
- Free Domain Name
- One-click WooCommerce
- Managed Security Suite
- Free CDN & Daily Backups
WordPress is open-source content management software that can easily be installed with Stromonic WooCommerce hosting plans. It creates the foundation of your online store. Many web hosts bring in one-click WordPress installation and many have it already installed. Once it is installed use step Wizard, which let you go through the entire process.
Choose a theme
Appearance matters the most and one of the best things about WordPress and WooCommerce is that it has a large collection of themes, classified as the WooCommerce theme library and the WordPress directory, with hundreds of free and paid options. Some of the things are the Threads theme, the artisan theme, the storefront theme, the block shop theme, the bistro theme, etc. Choosing right and the professional theme is important for it is the only thing that you can use to converse with your customer and use it in marketing.
Create website content
After you have created the theme, the content of your page and your product must meet the theme. For this, you need to take the following points into consideration:
- You need an upright home page that briefly sources your business product.
- The about of your page must represent the mission of your business clearly in order to fulfill the demand of the SEO.
- The contact page must be kept updated to keep your customers in touch with you and your business so that they may not leave your to store because of any irrelevant.
- A FAQ page should always be kept in regular consideration to help your customers by giving answers to their questions.
WordPress helps you with a number of ways to personalize or design your page as you want, like adding text, images, buttons, products, videos and specific settings for selling online like prices inventory details and levels, sizes, categories, etc., for those products that customers has to choose size or color or has to use the filter on prices, rating or brands.
Set up Store Functionality
Install WooCommerce dropshipping
WooCommerce dropshipping allows you to use all the functionalities that aid to connect your store to your supplier. Start with few steps given hereunder:
- Buy and install WooCommerce extension.
- Add suppliers as retailers, wholesalers or fulfillment houses to your store.
- Allocate products to your fulfillment house accordingly.
- Set up email notifications in order to keep notifications from the supplier on purchasing of items.
Choose a Payment Gateway
The payment gateway includes credit card payments that transfer that money to your bank account. WooCommerce allows you to use more than a dozen payment gateways making it easy for you, unaffected by your location.
On making a payment selection your business may need:
- The fees you require to pay
- The currencies you sell in
- Type of checkout process Your customer may need or use
WooCommerce payment is a free extension that allows you to manage payments, refunds, and more right from the WordPress dashboard.
Set up taxes
Your location and local law will lead you pay taxes. It becomes easier to manage sales tax with Set tax rates by default offered by free WooCommerce tax extension. This correctly determines the sale tax based on your customers’ city, state and country where the product is to be shipped.
Launch your Dropshipping store
For launching your site, you need to take counsel from some lawyer or accountant to make it certain to set up taxes correctly for your business. Thereafter, you are ready to set your online store in motion.
On having any doubt or need help WordPress and WooCommerce community is always prepared to help you. If you order WooCommerce hosting from Stromonic, you can expect lightning-fast and managed support on the application level by WordPress experts.
Distinctive features of a successful Drop Shipping business
Unique selling point
If you want to sell men’s clothes or some watch, why will someone choose your store to purchase unless you give him or her something unique? This is a big problem of many sellers as they have no idea about creating one’s identity. In this case, customers can get really bored of the old and copy-paste type of products and services. Therefore there is a need to create a unique identity and selling point. Whether they remember your
store’s name or not, , but they must remember the uniqueness of your store and services such as custom fonts, unique products, personal website design, eye-catching logo and your own photography. For example, blue crate, oddity mall, Aesthentials, etc
Clear and simple store
Having attention is good but sometimes you really feel sick of some repeated patterns and ways. The store should not only be great looking but also be a simple and clear layout at times. The counterbalance of the colorful designs with plenty of whitespaces is great. Bidet genius and Wallplate warehouse are great at this.
Great SEO score
What now you need is to get your website at the top when someone search this can be possible through SEO you need to maintain the keywords which most of people search for, original content as more original your own blogs, images and words are on your page, higher the chance of ranking well at google and you can also take help of SEO plugins.
You must offer free or low shipping charges at your dropshipping stores. It has been found that nowadays customers are frequently noticing free or low shipping charges rather than focusing on the cost or the quality of the product. So, in case, you offer low or free shipping, you may get already out of the race. This is considered a standard form of online shopping.
Great social media following
Marketing on social media now a days is on fire. 89% of marketers use Facebook and 90% of Instagram users follow a business on platform. It is inexcusable not to be on social media for the business. Social media not only helps you to you sell your products and provide services but also gives you an opportunity to build a community or a family for your store where the fulfilment house and the customers both are included. Also they will not only e help you in running your business but also will provide you different ideas and ways to maintain uniqueness and improve your service and flaws (if any).
Integration of WooCommerce with Amazon
Presently the entrepreneurs are converting their business to customize web stores of the kind we are talking about for WooCommerce works surprisingly very well with all kind of business models. There are a different plugin with the help of which you can integrate WooCommerce drop shipping with Amazon. Some of them are:
Amazon sellers have high perspective to make a good deal of money just depending upon what platform they integrate with. After going through different types of the eCommerce platform you will find, WooCommerce is one of the most popular eCommerce platform and all its credit goes to WooCommerce Amazon Fulfilment. It authorizes you to integrate WooCommerce with Amazon in such a way that your customers browse your store but all the items are picked, packed and consigned directly from Amazon.
This extension has the following features:
Order status tracking: Keeping things quite simple and in one place you are allowed to track your FBA(fulfilled by Amazon) orders directly from your WooCommerce account.
Domestic and international compatibility: Using this extension you are given great scalability over all the world it over all the world. It means you can sell the products to anyone in any part of the world.
Email notification: This extension keeps your customer updated with every step of the order fulfillment process you will be informed of the shipment of order tracking i.e., where it has reached and even if it failed to ship.
Stock syncing: with such pros of using the eCommerce dropshipping retail fulfillment method, it is clear that it will result in overselling. But it is not so with the WooCommerce Amazon fulfillment extension. It syncs the wares and stock to be shown before your customers with Amazon’s stock at the instant.
Example of WooCommerce dropshipping plugins: Here is the list of some of the most popular and used plugins.
Dropship me is a Freemium WooCommerce dropshipping plugin offers thousands of best-selling products from AliExpress. The features it provides are:
- 50k+ handpicked products from AliExpress
- Easy to use
- Recommended pricing mark
- Real customer reviews
- Lifelong customer support
- Edited product titles
Dropship me is very useful for those who are beginners. It uses one-click import for all products. It offers free services for the first 50 products and then charges.
Spocket aids you with source products from suppliers in the US and EU. You can import a product related to any of the categories from fashion and clothing, Electronics and Tech, Home and Garden, Automotive, Toys, Gaming, Computing etc.
In this you get the following features:
- Discount on imported products
- Unlimited orders
- One-click order fulfillment
- Order status tracking
- Premium chat support
- Real-time inventory updates
It is very easy to use it you can search products by the given filters like price location size and premium products. Spocket provides 14 days free trial then you will have to pay charges for whatever plan you choose.
Alidropship is another WooCommerce dropshipping plugin that helps you import products from AliExpress and fulfill the orders of your customer.
The features of this plugin are:
- WooCommerce compatible
- Pricing automation
- Customizable free themes
- Automated order tracking
- Live statistics
- Inventory management
Using the Chrome extension, you can import products from AliExpress and manage them like regular WooCommerce products. For optimising its use you need to take access to its standard plugin which may cost up to $89 USD.
Unlike others, it helps you to make dropshipping store using Amazon. It gives you two options:
- Signing Amazon associates and earning the standard affiliate commission by convincing people to join Amazon and make a purchase
- Like to drop sitting arrangement you can take orders directly and process the order on Amazon yourself in this you will have to put some extra effort but you will have full control over your margin
The features of this plugin are:
- Useful import tool
- Organized product showcase professionally
- Raw affiliate leads
- Pricing rules
- Amazon customer review
It is very easy to use it after setting it up. You just need to enter Amazon product page URL.
Now you have gone with its example too that exhorts it more clearly. You can manage your business easily with WooCommerce dropshipping without actually making any true investment.