One technique to generate income from your blog is to link your niche audience to your store. In this way, you can use selective marketing of known interests to deliver products. For example, if you have a gardening blog, maybe you can sell seeds, gardening supplies and books to your niche viewers. You are at an advantage because you know your viewers necessities.
Drop shipping is an emerging e-commerce business that allows retailers to sell products from their store without investing in inventory, warehouses and other fulfillments. When a customer orders something online, the product is shipped from the vendor and not the retailer. The retailer provides the vendor with shipping details and the item is shipped, direct from the vendor to the consumer.
This allows many retailers to cut down on inventory costs, shipping hassles and retail fulfillment issues. It is an attractive business model for small and home-based businesses that function online.
The business model seems simple. Customers order products from your website, you forward the order to the supplier, and the supplier ships the inventory. However, like with many things, the business model is not without its complications. Drop shipping is a double-edged sword. Competition is fierce, as more and more merchants have started using it. Here are some of the benefits as well as disadvantages of drop shipping:
1. It is easy to get started – In drop shipping, there is no need to manage, stock and organise inventories. Websites like Shopify cater to new merchants, providing website templates, free images, and payment processing.
2. It allows you to function on a very low operating budget and have healthy cash flow.
3. Drop shipping allows you to function at a minimum cost, and instead of owning a website you can sell your products at high traffic marketplaces such as Amazon, eBay and so on.
4. In this case, a retailer’s average margin might remain low as compared to retail stores, however, there is no question or risk of a “bad buy” that might result in overstocking of the retailer’s products.
5. It allows you to offer products almost instantly. The minute you want to sell a certain product you can start advertising then and there without any hassles.
6. You can offer a wide range of products without worrying about the nitty-gritty details and your supplier can handle the rest.
1. It is not easy to find reliable drop shippers, most serve competitors as well.
2. Merchants cannot control anything apart from their prices and the products.
3. Drop shippers can risk offering and selling products that are no longer available from their suppliers and this can result in customer complaints.
4. Reduced profit margins can also leave you competing with other online merchants, that have low prices for the same products. The competition can leave you with reduced profits.
5. In a market that is overcrowded and filled with competitors, a vendor that doesn’t sell the same products to another merchant is hard to find. So you may find yourself in a high niche and competitive drop shipping scenario.
6. To battle the competition, the more drop shipping suppliers you use, the more work you end up creating for yourself.
7. Shipping costs could also vary from one drop shipper to another, and paying the drop shipper his shipping costs while being forced to offer the customer free shipping can decrease your profit margin even further.
Drop shipping is not an easy road to success and involves a lot of planning and hard work. You will have to do a lot of research on drop shipping before you jump into this business. “Risk comes from not knowing what you are doing.” – Warren Buffett.” There is a lot of competition and you have to make sure your service and product is better than your competitors. However, with hard work it can be done, especially if you are serving an audience from your blog with known interests.