Monday, May 6, 2019

Can I Dropship Branded Products?

Before planning of being into a dropshipping business, this is something you have to really consider first.  There are many products that a drop shipper can put on sale online. Getting the right product niche for a drop shipping is the foundation of the business.  Moving on with this post we will discuss dropshipping branded products.
Can I dropship branded products? Technically, yes you can dropship branded products.  However, it is not advisable to sell branded products. But if you are thinking of selling branded products, you can do so. Keep in mind you would need a retail license to be able to sell branded products. You cannot sell without the retail license.
Why is it a bad idea to sell branded items for dropshipping?
Let us discuss the reasons why it is a bad idea to sell branded items on dropshipping.

Selling branded items on drop shipping is not a good idea.  As was discussed earlier, you need a retail license, which basically means you need to be legally authorized to sell the branded items.  Aside from needing a retail license, because you are selling high demand branded items, you also need to secure a liability certificate which costs a lot of money.

Branded items are highly in demand.  For example, is an Apple iPhone. Because of this, customers would like to directly buy these products directly from the manufacturer.  In addition, there are only selected manufacturers who are authorized to resell these items because of two reasons. 

Branded items are sold to select manufacturers to control the brand.  This would mean, the products are only produced by the legal manufacturers and not imitation.

Branded items are sold to select manufacturers because they want to control the price.  Each branded items sold to manufacturers have their own product pricing that is standard for all stores.  Because they were authorized to resell items, they obtained a retail license and a liability certificate to protect consumers. 

What do you need to do if you want to sell branded products for your dropshipping?
Now that we learned why it is not a good idea to sell branded items, let us move on and know what you can do if you wish to continue selling items that are branded.
Find a liquidator
A liquidator is someone who works as a middleman.  Let us say, these liquidators are willing to make a purchase for the branded items on your behalf.  Basically, they buy the items at a very low price from the manufacturer. They can either make a single purchase or by bulk.  These new items that were bought can be sold on your store because it was bought from the manufacturer. Hence, allowing you to be able to resell it.
Selling accessories of branded items.  
Aside from the fact that branded items are costly, there are accessories for the branded items that are highly in demand.  On our example, earlier which is an Apple iPhone, cell phone cases, chargers, and many other accessories are highly in demand.  It not only discounts you from spending much on branded items but also will allow you to gain more profit from the purchase because it is relatively cheap.
Make your sale via Retail Arbitrage
The concept of retail arbitrage is pretty simple.  Let’s say, a retail store like Walmart, Costco, or Target goes on clearance sale.  Obviously, the products are sold at heavily discounted rates. You can purchase items from the retailer and post it on your store making your profit.  You are not violating copyright infringement because just like in the essence of a liquidator, these items were purchased from authorized retailers, too.
How to Choose Products to Dropship?
There are a number of products that you can post online.  Below is the list of things you have to put in mind when choosing the products to post on your dropshipping business.  
Understand the demand for the products
We are dealing with selling goods and products.  We want to focus on selling more items. Getting products that are high in demand would mean more revenue for the business.  We can choose products that are on trend. As a drop shipper, you can start by choosing products with a high number of orders.
Know your market
Identifying the market is also important. While we know that there is demand for the product, if we do not target the right market for your product, it will not make an impact on your business.  By choosing the market, you have to know the demographics such as age, gender, and location. You don’t want to end up selling a product that is not appropriate to your seller, do you?
Be competitive
Having competition is a given to any business.  This is true with dropshipping, too. Especially that dropshipping is a business with low risk.  There are products on your store that is also available on other drop shipping stores. Be mindful with your competition and be at par so that you can secure your customers by posting competitive prizes, promotions, and advertisements.

Choose products that you know
There are some customers who want information about the item first before making the purchase.  You want to be able to address the query to ensure that the customer buys the business. If you know the product, you will be able to make the right marketing approach because you know the market too.
Products are easy to transport or ship to customers
One of the advantages of dropshipping is selling products at a low price.  However, shipping is sometimes shouldered by the customer. If the products you are selling big and bulky, most likely the shipping fee will not be minimal.  We also want to consider instances when customers need to do a return, some customers may not want to pay for the shipping fee. Hence as the drop shipper, you would be the one to pay for shipping fees. This, in turn, will improve your ratings as a seller.
Related Questions:
How do you find a reliable supplier for Dropshipping?
These are some of the qualities that you are looking for when finding the right supplier.

They should know about dropshipping.
Ask if they offer custom labeling.
Know how long is their shipping time.  
How do they do order fulfillment?
How do they respond to the customer’s request for replacement and refunds?

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