Monday, September 16, 2019

E-Commerce is a modern means of business in this generation and is expected to keep growing in the following years.  Dropshipping is one of the models in e-Commerce used to sell goods and supplies to customers. At this point, people are showing interest in dropshipping to earn money. Let’s know why that is the case.


Why do people get attracted in having their own dropshipping business?  People are going into the business because dropshipping promises results to the people and is straightforward. Comparing it with a conventional store, it does not require inventory and big capital investment because most transactions are done online. The competition is very tough that we see plenty of advertisements related to dropshipping. 


Is Dropshipping Still A Good Business in 2020?
Dropshipping is a good business model. Steep competition is a good sign that it is a stable business to invest in. It is an implication that the demand is high in the market and there is a need for more dropshippers to supply the needs. I guess the right question to ask is, how to handle the competition in dropshipping. 


When we decide on choosing a business to operate, one of the things to consider would be the ability to develop in the field. In the dropshipping profession, there is so much to improve and learn. This is a very challenging role because as mentioned, we have high stakes of competition. Among these challenges, we need to learn Why Most Dropshippers Fail.  


As an entrepreneur, our goal is to earn and expand the business. Generally, we can say that dropshipping is a good business model in 2020. The technology continues to develop its scope. And the way to survive is to work towards the demand while integrating with technology. This my friends makes dropshipping a viable business.


Customers are leaning towards convenience and most operations are influenced by technology. Although, there would still be people who will traditionally do retail, which is fine. We want to acknowledge that the majority of potential customers are millennials and are highly adept to technology. Did you know that millennials, people who are born in 1982-1999, spend an average of 6 hours online?  


These same people are becoming part of the working class. Their decisions are influenced by technology and are always seeking for convenience to becoming productive. This reasoning is the major reason why dropshipping demands consistently goes up regardless of the competition.  


Due to the expectations in competition, we need to be “in the know” of what trending products, software, strategies there are to beat the market. As discussed on our blog Why Most Dropshippers Fail, we cited reasons for failures of every dropshipper and one of it was being too emotional to work as a dropshipper.  


There is a high percentage of people failing dropshipping. 7 out of 10 dropshippers fail in the business. We do not want to become part of the 70% of people failing in dropshipping, right. As much as possible we want to know  What Tips Can You Share With People Who Want To Succeed In Dropshipping

Is Dropshipping Worth It, Generally Speaking?
Yes, dropshipping is worth it.  The dilemma in spreading the word of dropshipping also has a disadvantage.  Because there is a rise in people who join the business of dropshipping, there will always be those who will share their negative experience as a dropshipping business owner.  This is normal. As mentioned earlier, there is a bigger ratio of people who fail rather than those who succeed. 
You will hear discouraging remarks in dropshipping.  But looking at a broader perspective, dropshipping is good and worth it knowing that it is convenient for most people who do not have enough funds and want to change their regular working routine.  Not only that it provides a source of income, but it also rewards you with skills you can improve as a business owner.  


You want to concentrate on getting more tips from successful store owners by joining forums, and groups that deal with dropshipping.  Here you will face the real, on-hand experience of successful people and share honest opinions about the job you are looking into.  


Conclusion:
Dropshipping encourages good outcomes both in terms of monetary and as a rewarding accomplishment.  Although, it surely requires a great measure of hard work and challenge. To survive the demands, and the challenges that may occur as you go along the business, it is very important to find a reliable support system in dropshipping who can attend to your needs as a seller.  


Multi-Drop is a dedicated team to support you with your needs in dropshipping. You are looking into working with a highly experienced team who are accommodating and professionals. They lead sellers towards achieving a good practice from shipping, product descriptions, clear product imaging, and even customer support. 


Visit our website so you can start having the support you need in setting up, working, and becoming successful in dropshipping. You may also send us an email for inquiries. We, at Multi-Drop, is always looking forward to working with people who are passionate and excited about becoming successful in dropshipping. 

Monday, September 9, 2019

Affairs made online is everywhere. One of these activities is retail shopping. There are several means to buy products. And one of them is through dropshipping. Dropshipping remains to grow because of the tactics used to encourage sellers, in turn drawing more buyers, and also those who desire to start their own. 

Where do people sell dropshipped products? Dropshipped products can be marketed anywhere. Because of the versatility to negotiate, traffic is not limited to a specific location. The products sold from a dropshipping store are sourced from wholesalers abroad, most of the time in China. Hence, does not influence the location in terms of sales in dropshipping. 

Big Four in Dropshipping
Granting the flexible freighting locations and the broad range of customers we can get to dropshipping, we want to study where to target our marketing efforts. We understand the significance of marketing in dropshipping. Working smart is equally necessary so that we can maximize resources such as time and capital. 

During your research, you might have encountered the “big four” in dropshipping. This is suggested by fellow dropshippers who give their opinion on how to improve sales for your store. What is the “Big Four” in dropshipping?

The Big Four represents the top 4 countries where dropshipping is the best fit because of the market, sales, and quality. The following countries are part of the big four: United States of America (USA), United Kingdom (UK), Canada (CA), Australia (AU). 

The Best Countries to Dropship
When asking for pointers and suggestions, you will always see a guide to sell your products in these countries. One of the most common questions being asked is for suppliers that can produce quick delivery on these countries because they have the biggest market of dropshippers.  

Based on experiences, customers located in these countries make more purchases compared to other countries. As a dropshipping store, you aspire to target a market where you can get more customers. Also, the population of these countries is high, which then gives more chances of earning more. 

Besides, these countries are highly developed and provide good locations where delivery is convenient.  It will not be difficult for dropshippers to distribute products to customers in these countries. More warehouse is settled now in the US to extend the scope of delivery while sustaining efficiency.

Another reason to dropship in these countries is the ability to connect to more customers because of technology.  As a dropshipper, we can increase our influence using marketing plans linked to social media and other means of technological advancement.  The language that they speak is English.  

Moreover, these countries value time due to an active schedule.  They prefer making transactions online to maximize their time. These people acknowledge convenience too much which is a primary advantage of dropshipping.  Prices are also more economical compared to large retail organizations. 
List of Countries Where Dropshipping May Not Be Suitable
On the other hand, there are places where dropshipping may not be appropriate due to several reasons.   Although the network is universal in dropshipping, you might want to lessen the efforts on these locations so that you can concentrate further on the primary areas which you can gain more customers.

The list we are to present is based on collective data gathered from various sources such as forums, discussions, and groups that support dropshipping.  The countries where dropshipping may not be suitable, (not in a specific order) are the following: India, China, and Indonesia. Let us talk about it more and examine why we listed them as “inappropriate” countries for dropshipping. 

India 
Earlier we spoke about geographical factor and population as one of the grounds why we consider countries to target in dropshipping.  While India is one of the countries with high rates in populations, it is not fit to do a dropshipping business because the traffic we produce from the location does not generate enough sales.  It is determined that we get more “clicks” or site visits from India, yet the sales are relatively low.  

Indians like window-shopping products on sale through the internet but generally, do not proceed with the order.   Strategically, if we concentrate on targeting this country, we will be more inclined to create high traffic. But it will not be profitable for us because the sales are weak. 

Indonesia 
Another country to be wary of exceptionally when starting up would be Indonesia.  There is a high rate of fraud. For starters, even for established dropshipping business owners, it is not likely to negotiate because of high risks of fraudulent activities.  

You may be earning enough by targeting this country but in return, if identified to be fraudulent, you will lose a customer due to bad ratings.  Regardless if we sell genuine products, due to a bad reputation, we might also be tagged along. As a business, we do not want to be involved because all our efforts will be put on waste. 
China
Most of the suppliers of dropshipping are based in China.  They produce low-cost products which are reasonably better as we can increase the margin and make more profits.  This is a fact and is the main idea why most products that are acquired from a dropshipping company needs longer to accomplish items and deliver to customers. 

Contrary to this statement, as much as possible, we want to source our goods from other countries.  Not because of quality or the interval to deliver the products to our customers. We want to avoid China because of competition.  

Chinese customers recognize active sources of the products. You might be able to sell these products.  But surely, they can get it at a lower price because of competition. Obviously, they would consider making the purchase from them rather than get it from a dropshipping store.  It is just practical. 

Conclusion
Given the discussion, we want to operate smart and be decisive in making our store strong.  I understand that there are several factors to do this. One of the benefits of dropshipping is being able to get assistance and knowledge utilizing the internet.  It will help us be cautious.  

To be successful in this profession, it would help to partner with someone who has extensive experience and expertise in dropshipping.  Just like Multi-Drop. Our goal is to help dropshippers succeed. Your success in the business is ours, too.  

Friday, September 6, 2019


With plenty of people who want to want to do business and start dropshipping, likely, most will not make it. Hence, it is no doubt that we all want to hear tips about how to become successful in dropshipping.  In this post we want to share some of the tips we can do to become a pro in dropshipping. 

What tips can you share with people who want to be successful in dropshipping? There is no formula in becoming successful in dropshipping. The courses are designed to guide you in dropshipping. The only tip I can share with you is to learn from every experience you gain every day as you do dropship. You will encounter different issues every day and you have to be ready for it.
To give you more inputs about becoming successful in the craft of dropshipping, let me share more to the things you need to focus on to work on the ladder of success in dropshipping. There are key elements that need attention to achieve the win for the business. And for dropshipping, these are the elements we are looking for. 

Allotted Time for Shipping
You might see posts about shipping times in dropshipping and it is a fact that it takes more time to complete the order fulfillment, moreover the delivery time to send items to the customers.  There are also statements on blogs, forums and groups saying that it is okay that delivery times in dropshipping longer. This is not true.

Even if most people say it is okay for delivery times to take longer in dropshipping, the customers will always want to get their products faster.  Customers do not know about the standard delivery times in dropshipping which takes roughly 15 days at least. When customers buy clothes, accessories, or any product online they want it to be delivered fast.
This is one of the major complaints we get from customers who buy products from a dropshipping store.  Delivery time takes extremely slow. This is a fact. Primarily because the products are handled and shipped from overseas, most likely coming from China suppliers.  

Although there are suppliers from the US, the majority of suppliers originate from China and that affects the overall delivery time and handling of the products.  Hence the reason why dropshippers would also look for suppliers who have a warehouse in the US, because shipping time is faster. 

Getting Repeat Customers
One of the goals of a seller to get repeat customers. This strengthens the relationship between the seller and the customer. At the same time, having repeat customers increases the chances of promoting your store to other customers, too. In essence, how do we get repeat customers to stay in business and continue to patronize our products?

First on the list would be quality products.  When they buy products from an online seller or a dropshipper, the customer would expect to see the products to arrive in good condition.  This means good packaging and legitimate products being sent to the customers.  

We want to ensure that the products are delivered to the customers meeting their expectations about the products as stated in the description.  

Second is customer support.  Customers would like to inquire more about the product when they want to purchase something online.  This is guaranteed as most of them would need to get specifications about the product they want to buy from your store.  Things that are not listed on the product description, actually even when already listed on the fine print. 

Customers would like to get their money’s worth and would keep asking about the product, like the size, how it works, what battery support is needed, the approximate delivery time, status of delivery.  These are the common questions asked by customers to the seller. Which makes it important to handle customers properly. 

How the customer feels when asking these questions matter to them.  Regardless of the price they are paying, they want to ensure they are treated well.  This is where the seller’s ratings are being measured. The customer’s opinion would always matter to other customers, so beware. 

And third and always a matter to consider would be the delivery time.  Remember we mentioned earlier that while some customers or dropshipper say it is okay for delivery times to take longer, it is very important to most customers to get the products quicker.  I could not elaborate on this more as this was already mentioned above. 
Huge Expenses on Advertising
While most of you agree that expenses on advertising and marketing strategies eat up a big chunk of profit in dropshipping, we should still be clever in planning how to do our advertising strategies in dropshipping. Why so? 

Some of the dropship owners would invest in marketing and advertising which does not make the expected return in the business because it does not target the right audience. You indeed need to spend money on advertising but it does not mean we have to waste money on lousy marketing ads.

Sadly, some of the beginners would fail on this element to success because they did not get it right. On our post about How To Get Free Traffic To Your Dropshipping Store, this talks about other ways to reduce spending on marketing. This is helpful to startup dropshipping businesses who do not have enough knowledge of the products, and audience for their business.  

Conclusion
Becoming successful in dropshipping means hard work and perseverance, especially for starters. This could not be achieved overnight. Sometimes it would take months before you get the right “formula” for the business to operate smoothly.  

One of the reasons stated in our previous post about Why Most Dropshippers Fail is becoming too emotional. This could mean too early to start, and too early to quit dropshipping. To become successful in dropshipping, your learning experiences would make the mark and is a great help. Also, getting reliable suppliers is a huge help to succeed.  

This is how Multi-Drop can help you with your dropshipping needs. From product marketing, research and even customer support. We are always here to help. We are working with experienced dropshippers who just like you, was challenged with making dropshipping successful.  

Visit our website today at Multi-Drop, or send us an email at support@multi-drop.com to start making your dropshipping success come to life. 


Monday, September 2, 2019

We are seeing posts and videos talking about what products to sell, how to advertise your store, and how much you need to start a dropshipping business. Now, we want to share with you another way of saving money in dropshipping. And the question today is if we should use dropshipping or buy products in bulk?

Should I use dropshipping or buy products in bulk?  I recommend buying products in bulk because of these reasons. It gives you more savings. It reduces delays in shipping. It allows you to do your quality control over the products. But, all this is considering that the products are consistently selling for at least 2-3 weeks and you do not feel it will not die out anytime soon.


Let us all move forward as we discuss why wholesale dropshipping is more favorable to us.  Basically, we have generalized the reasons to better summarize how wholesale dropshipping can benefit you.  However, know that should you wish to stick with retail dropshipping is entirely up to you.
Bigger Savings on the Product Pricing
To compute on the pricing of a product be it a retail or wholesale is based on several considerations. First on the factors to consider would be the cost of materials, labor, profit, and overhead expenses - which is the overall expenses spent to come up with the product.  

Examples of overhead expenses are the following but are not limited to shipping cost, packaging, energy, marketing and many more.   Aside from saving more from shipping costs, it will also reduce the delays in shipping the products from the warehouse to the customer.  

On our previous post about What Is The Turnaround Time For Fulfilling A Dropshipping Order.  We discussed how important it is to fulfill orders faster.  It will make more happy customers if you will be able to deliver the products to them faster. 

Wholesale prices are relatively cheaper compared with retail prices because if accounts for the profit you can gain in case you never sold the products.  In this regard, retail prices are usually double the price of wholesale.

Wholesale Dropshipping Brings Better Business Relationship with the Suppliers
A businessman would always think about the stability of the business. Although suppliers would choose to work with retail dropshippers. Given the statement we just mentioned, suppliers would more likely to feel secure to work with wholesale dropshippers.  

Buying products in bulk from suppliers would create a better relationship. The longer you are staying with the supplier and buying bulk volume, the better rates you will also get in the long run. You will also expect quality service from your suppliers because they would want to keep doing business from regular clients who make huge purchases, right?

Longer Business Term
In line with the good relationship you will expect from your suppliers, you would also expect to have long business term with them. They will expect to give you better service and rates to keep your business. The contract will more likely stipulate better protection for your business because you are making huge purchases.

Also on your end, having bulk products on hand will give you an advantage among the rest.  Because you were able to get the products at fairly low prices, you as a seller could also sell your products at a more competitive rate.  You will also be able to supply to buyers who will buy the same products in larger quantities.  

Create your Own Branding
Another potential saving to the business is to be able to create your branding for your products. Remember we mentioned earlier how we can save from buying products in bulk. Branding is considered an overhead expense. And with the ability to produce your branding for your products will save you more. 

You will also have the advantage of doing quality control because you can see if the products you will send to the customers are of good quality and no defects. Although this will mean more work for you, at the end of the day, we want to look at the bigger picture of making customers happy. 

Less Customer Complaints
On to the last objective of doing wholesale dropshipping, we go to the customer satisfaction. I put this reasoning at the end because customer satisfaction is our biggest output. We are catering services to our customers and having fewer complaints from them is an achievement to the business. Overall, given the advantages we mentioned above will all result to least customer complaints. 

If we were able to maintain this status in our business, we can ensure that we can attract more customers to buy from us. Hence, will give more profit to the business. If in the long run, we think of making an expansion, it would be more feasible because we can already handle the business well.
Why Buying Bulk Products is NOT Suitable for your Dropshipping Business
Those advantages we considered earlier are good points provided that we are confident that the business can sustain buying products in bulk.  It may not be appropriate for some because of the following factors. 
  
No Space for Inventory
An advantage of dropshipping is not spending on product inventory. This is a fact and is usually the case why people are putting up their store. So, in any case, if you do not have space to keep safe your products, then definitely we can stick with retail dropshipping. It will be more practical for you. 

Minimum Capital
If you can only set up your dropshipping business at a bare minimum which was discussed in our previous post What Is The Cost Of Launching A Dropshipping Store, then it is definite that you are unable to sustain having a wholesale dropshipping. Your capital expenses need to be considered because you will be spending more not only in space but also in making large quantity purchases.

Your Dropshipping Store is a Startup Business
While we mentioned above that the wholesale dropshipping can be used to protect the business and can result to a long business term, it may not be clever to do wholesale dropshipping given you are only starting with the business. 

We want to calculate the risks when making decisions for the business, especially that we might lose more. This is one of the mistakes made by startup dropshippers where they jump into making aggressive decisions losing more in the end. Remember, our goal is to earn. We want to work ourselves in making it happen.
This post is for the purpose of giving relevant information only.  Should you decide to choose between dropshipping and buying bulk products is totally up to you and shall also depend on your ability and capacity to cater both fulfillment methods.  At the end of the day, we want to ensure that we gain from the business and minimize the risks involved mentioned in Why Most Dropshippers Fail.

Sunday, August 18, 2019

When thinking about starting up a business, you need a structured plan to keep track of the progress of the business according to the timeline.  Cost, marketing, manpower, location are among the things to consider. Some of these does not apply in dropshipping. Is business registration part of the things to consider when putting up a dropshipping business? 

Before I answer the question, I just want to give a disclaimer that I am not a lawyer or a CPA of any sort.  I do not have the legal capacity to provide legal advice. The information that I will be sharing is to guide those who are looking forward to starting their own dropshipping business.   

This is based on collective research, and experiences shared by other people who had first-hand experience.  

So, the question now is, “Do I need to register a business to dropship?”  Yes, generally speaking any business needs to be registered depending on the applicable laws in your location.  While some might say it is an online business and does not require a space, it is however, a requirement to declare your income.  Hence you need to report your finances for tax purposes. 

There were two different opinions given when it comes to the question of whether to register a dropshipping business or not.  Some say, it has to be registered. Others say it is not necessary. Now let us explain both sides to understand their perspective.
Why You Need To Register a Dropshipping Business Explained
First on the list of reasons why we register a dropshipping business is because of tax purposes.  As previously mentioned, all business need to be declared for tax purposes. Regardless of the type of business you have: a sole proprietorship, a limited liability company, corporation.  

If you are selling taxable products, your business needs a Sales Tax ID depending on your country or location.  If you are making money out of the sales and is not an employee of a business, then you are considered a business and you need a license to operate.  You are required by law to declare your finances as the income of the business. Otherwise, you will be facing serious problems in the future. 

This does not discount the fact that you do not have a physical store or you operate the business online.  Of course, each city and country of your location has different laws. As stated earlier, you may need to contact the business office at your place to discuss the scope of your business, and the process you need to go about registering your dropshipping business. 

Another advantage of having a business license for your dropshipping business is that you are giving your customers assurance that you have a legitimate business.  This is important in dropshipping. You will also have leverage and be able to negotiate with more suppliers because some suppliers will ask for a business license to deal with you. 
Why It Is Okay Not To Register a Dropshipping Business Explained
On the contrary, many dropshippers say that you can still operate your dropshipping business without having to register the business.  The first thing to ask is if you have on-hand inventory. Since dropshipping does not hold inventory, and the majority of the transactions are happening online, then you are not required to register the business.  

Another thing to think about is the level and scope of dropshipping business you consider to run.  Because dropshipping has been in the market for years, and more and more people continue to start their own, you have to understand that some of them do not use this as a full-time business, but it is more of a hobby.

A hobby considering the minimal margin you get from selling merchandise from dropshipping.  And also, not being able to generate enough to consider this a full-time business. If you read through this post What Is The Average Margin In Dropshipping, you would have an idea on the price margin you can set per product.  

This limits you not make enough in the beginning because there is only a limit you can use as a margin.  Now, as part of starting your dropshipping business is to ensure that you can legally operate as a business owner.  Previously I wrote about What Is The Cost Of Launching A Dropshipping Store.  

Here you will gain information on the initial set up for the dropshipping business you want to put up.  Although it was not discussed if you need to register the dropshipping business, at least it will give you an idea as to how much you need if you have decided to start your own. 

I would have to reiterate that the process may vary depending on where you are at. Some locations, cities or a country,  anyone that conducts the business of any kind, online or not, is required to have a business license. Primarily, this is the reason why there are two different opinions when it comes to deciding whether or not to register the business. 

It is always best to consult your local business office for assistance as to how you can go about the process of registering your dropshipping business, should they advise you that it is required.  One thing is for sure though, it is required for you to declare your income to your taxes to avoid having problems in the future.  

At the end of the day, you have an idea of how you want to run your dropshipping business.  You decide how big your goals are in dropshipping. At which we consider the budget, the scope of the business and how many customers you aim to target to earn money.  So I guess, the question is, “Would You Register Your Dropshipping Business?”