You’ve heard of dropshipping. You might even know a few people who run dropshipping businesses. But do you actually know what dropshipping is? Don’t worry, you’re not alone. Here’s the basics: Buy low from one online retailer (Amazon, for instance), sell high on another (like eBay). No physical inventory, storage space, or checkout stand needed. Sounds simple, right? Well, as anyone who has ever run a dropshipping business will tell you, looks can be deceiving. In reality, the traditional approach to dropshipping has five time-intensive steps that often make the process more trouble than it’s worth: Item location, listing, monitoring, support, and fulfillment. Let’s take a look at each step in more detail.
Traditional dropshipping in five steps
Imagine you’re running a business of Amazon to eBay dropshipping i.e. you’re buying low on Amazon and selling high on eBay. Here are the five steps you’d have to take for every single item you sell.
Step one: Item location
Your business is only as profitable as the items you sell, so choose your digital inventory wisely.As a general rule, the items you sell need to meet three requirements: High demand, high profit potential, and high price stability.Misjudge any of those three criteria and you’re going to start losing money. Start losing money, your new dropshipping business won’t last long.
Step two: Listing
Practically every market is crowded, and you can safely assume that you won’t be the only one selling a particular item on any given marketplace.To stand out, you need a listing that grabs people’s attention. As a general rule, a good listing has a competitive price, a search-friendly headline, and compelling content. If your item isn’t at the top of your potential customer’s searches, it isn’t going to sell. Period. So stand out or don’t bother listing at all.
Step three: Monitoring
Prices and online inventories are always in flux. Unless you’re constantly monitoring the marketplace and updating your listings, your items will be obsolete in a couple days.This means changing your pricing as new competitors enter the marketplace, correcting and updating your written content, and occasionally removing out-of-stock listings.
Step four: Support
Your potential buyers are going to have questions. If you don’t answer them, they’re going to buy from the seller that does. Expect to spend a measurable amount of time reading questions, researching answers, and communicating with your prospects.You need to know your best-selling products like the back of your hand, and be prepared to answer questions at any time.
Step five: Fulfillment
Fulfillment is all about putting the “shipping” in dropshipping.Once an item sells, it’s your responsibility to order and ship it to your customer. You’ll also want to provide your buyer with a tracking number and be prepared to handle any post-sales support, such as lost deliveries, item defects, and returns.Your dropshipping business thrives on your reputation, and your reputation is built on your fulfillment process.
A new, better approach to dropshipping
For a 20-item store, those five steps might not seem so bad. But a 20-item store isn’t going to generate a lot of revenue. Imagine trying to run a 10,000-item eBay empire, and repeating those five steps for every listing. It’s impossible.So does that mean it’s also impossible to build a fortune through dropshipping? Absolutely not. If you’ve ever found yourself frustrated with the amount of time it takes to run a successful dropshipping business, there’s a better option: SaleFreaks. It’s time to automate, optimize, and liberate your business through our dropshipping automation software that can help you get max out of your amazon to eBay dropshipping efforts. Our one-of-a-kind SaaS solution optimizes and automates every step in the dropshipping process, from location to fulfillment and everything in between.The world of online retail is about to change forever. Will your business be a part of the past, or help define the future?Learn more about how you can take your dropshipping business to the next level by checking out our features! Ready to take the plunge? Request access to SaleFreaks today!