Dropshipping: The Complete Guide

This is the most comprehensive guide for Dropshipping on the planet.

We have divided the Complete Dropshipping Guide into 4 sections :

1. Understand A Dropshipping
2. Start & Grow A Dropshipping Business As A Seller
3. Start & Grow A Dropshipping Business As A Shipper
4. Future of A Dropshipping

This guide aims to help the "Average Joe" understand dropshipping better, start and succeed in this business model of the future.

1. Understand An eCommerce

It is very important to understand dropshipping fundamentally so that it will open up your mind for wide range of possibilities you can achieve and utilize it to solve many different kind of consumer/business problems.

1.1 What is Dropshipping?

1.2 History of Dropshipping

1.3 How Dropshipping Works ? A Real Life Example

1.4 Types of Things Sold With Dropshipping

1.5 Types of Dropshipping Business Models

1.6 Types of Dropshipping Revenue Models

1.7 Advantages of Dropshipping

1.8 Disadvantages of Dropshipping

What is eCommerce?

Drop-shipping is a kind of business in which you don't have any product in your store to sell. A customer places an order on your online platform. Then you contact some third-party retailer to buy that product for the customer. In this whole process, you find a wholesale retailer and use to buy a specific product to the customer on the retail price. In this way, you earn a profit.

In this system, there are some benefits to do this, and also some loss is there. Like you have an advantage over the place. You don't need to have some physical office or place from where you operate. You can do this from your home as well. And if you are looking for something or some business with low investment, then this is for you. You can do this as an initiative for your online business, and then further can grow it as you want.

But there are also some cons to this business. The rate of competition is relatively high in the market. This is slightly less profitable because of multiple reasons like high competition, pay to the retailer in terms of outsourcing your business, you’ve to take its complete liability even when it would be a supplier’s fault, so on and so forth.

Okay, now if you are thinking that who is drop-shipping for? Then it’s for those who are budget entrepreneurs who don’t have much more to invest but want to do their own business. Next, those who just want to taste the market for different kind of products to make that their product of sale (POS) in the long run, like which product is in the high sale and which is not, this is for those.

So, go for this business if you think that you fall in any of the mentions above categories.

1.1 What is Dropshipping?

Dropshipping is a very common term in our world today, which addresses the need of businesses, customers & goverment to reduce cost and improve the quality of goods and services while increasing the speed of delivery. Dropshipping in a most simplest form refers to the paperless exchange of things or traditional eCommerce businesses.

Key Points :

Basically, you are a bridge between supplier and customer. Following are some core points which must be observed when talking about drop-shipping:

- The customer places an order for a product on the retailer’s online store.

- The retailer then automatically or manually forwards the order and customer details to the dropship supplier.

- The dropship supplier packages and ships the order directly to the customer in the retailer’s name.

Brief Summary :

Drop-shipping is great for entrepreneurs because they don’t need to put a huge investment in this and can start their own business just with a single laptop. One of the biggest benefits is that you can make your online platform as an affiliate marketing source of income. Like you can contact some company who want to show their ad on the internet to grow their business. Contract with them and earn a profit. It’s kind of extra benefit using your online platform.

But you have to understand theirs is a little bit difference between drop-shipping and affiliate marketing. In drop-shipping, you buy the product from a retailer and can set-up your own price for it. But in affiliate marketing, you cannot set your own price because you just earn a commission by marketing a specific product of a company just by referencing that to a specific domain of a customer.

1.2 History of Dropshipping

Early Days :

The concept of drop-shipping is as old as the 50’s. In fact, the word “drop-shipping” is quite new. This idea was always simple which was used to term as a warehousing distributor, wholesaler or manufacturer. They were willing to ship the products directly to the customer or you can say, end user. Drop-shippers just work to produce sales and generate revenue.

The next major introduction of drop shipping into the supply chain as a fulfillment method came with the computer revolution. Manufacturing was the first to be impacted by the advent of computers, leading to the Japanese manufacturing revolution.

Computer Revolution :

Then after this, the computer revolution started expanding in the market speedily. Then most the old trends or we can say the so-called old method and alternates of drop-shipping were starting changes into different kind of businesses and terms. At that time Richard Jones, who was the Co-Founder, CTO and EVP of Operations at CommerceHub said that “as the number of suppliers who could drop ship grew, drop shipping as a fulfillment option began to attract the attention of traditional retailers”.

Business Strategy :

From getting products to upload on site with their respective images and description to taking returns, all the retailers were curious and trying to invent their e-commerce story as they rode rocketing sales. Those retailers who aggressively pursued drop-shipping saw their sales grow even faster than that of others. It was quite clear that by doing assortment for different kind of products is directly related to higher growth in sales, and drop-shipping just provided that.

Richard Jones said that “Once people learned to trust their credit card to a website, it was clear that e-commerce would be the huge wave of the future”.

In all this, Amazon has been changed each and every respect of the drop-shipping business.

1.3 How Dropshipping Works ? A Real Life Example

As we mentioned earlier that drop-shipping doesn’t own any inventory or warehouse to manage products. All you have to do is to pick up products from a third-party and sell. Your role is like in between a supplier and a customer. But this unique role is so important that it can take your e-commerce business on another side.

A Real-Life Example :

It’s a story of Khuram Dhanani. As we know that Khuram Dhanani is no stranger to entrepreneurship. He started his first business when he was just 16 years old. His parents were in the business of jewellery. In the start, he used to pick up the best products from his parents’ store and put them on Yahoo Auctions and sale it.

Eventually, he sold out his family business to Paul Winston Group and then moved on to play with e-commerce. He did business with few European suppliers in the early days. He worked out a business model where he would give away a complete, turnkey e-commerce store for just 99 cents provided that customer would agree to purchase hosing. This business was later sold to some hosting company called Silver Gear.

After that, Dhanani started his drop-shipping business company named as ZQ Networks. He grew his business to about 300 suppliers and about 10,000 products. Later, he split his business into different categories to make more revenue and ultimately complete his goals.

This is how a young guy started almost from the beginning and by making progress in drop-shipping he built his complete empire in this business.

So here you can see, real people, real business, and how e-commerce made this simple. You can see how e-commerce can play a major role in regard to drop-shipping and somehow in many other businesses as well. So, don’t underestimate the power of technology these days.

1.4 Types of Things Sold With Dropshipping

So far you come to know that the domain of drop-shipping is not limited to some specific kind of products. It’s very vast. There are a number of products which you can sale with drop-shipping and earn a profit. But there would be some factors like area, region, and culture. These kinds of things define the mindset of people that which kind of product people would buy a specific region.

Following are some products example which you can sale with drop-shipping:

Face Rollers : This is one of the best-selling products this year. This is used for beauty purposes like reducing swelling in the face, remove toxins from your skin and decrease dark circles under the eyes.

Bandage Bikinis : This product is regarding women’s fashion. Yes, this is one of that products which usually sell more in its specific season. There may be a surge for this kind of seasonal products when there would be winter days.

Tea Infusers : Undoubtedly one of the best-selling in the venture of homeware niche. This product is eye-catching and a must-have for tea lovers. To there would be a chance that these kinds of things can generate more revenue.

Hiking Backpacks : Spring and summer is the break for hikers to go for a trip. And for this, they love to buy new gear. This how you can increase your sale.

Minimalist Wallets : These days most of the people don’t like to carry much cash in their wallets. All they need is a credit card or a debit card. So, this is a handsome product you can sale with drop-shipping.

Phone Lenses : Everybody wants to take the best pictures from their mobile phones. Because everyone couldn’t afford a camera. So, phone lenses are one of the best-selling products.

Portable Power Banks : As this is the era of technology. Everybody has a smart-phone. But these devices couldn’t be able to last their batteries usually for more than one day. So, people who use to travel needs this the most.

1.5 Types of Dropshipping Business Models

Drop-shipping is not a hard and fast rule which is tough to understand. It’s an easy concept. But here I am going to explain about different models of drop-shipping which are usually use. This would be helpful for you to get a better understanding of drop-shipping and also for launching your own drop-shipping store.

Basically, some book authors and blogger say that there are two models i.e. frontend & backend. And some of them say that it’s divided into two categories i.e. drop-shipping & classic.

Frontend & Backend :

In the frontend, the customer only knows about your site and respective products on that. He places an order and after some days receives a notification like his order has been shipped. This all includes tracking of the product.

On the other hand, as you receive the order from the customer, you instantly contact to supplier and purchase the product. Then ship the product to the customer or said to the supplier to send it.

In this whole process, the customer knows only one thing that he is ordering a product from a simple e-commerce site and nothing else.

Drop-Shipping & Classic :

In drop-shipping, the customer orders and pay you for the product. Then you pass on the order details to the supplier with the payment of that product. Then in return, the supplier delivers the product to the customer.

On the other side, in a classic, you get items and products from a supplier and pay him. After that whenever the customer places an order, you serve him and deliver his order. And after that, you receive the payment.

Both of the above models, which are, frontend & backend and drop-shipping & classic are used according to the marketing need and culture. This may vary from region to region and types of products you are offering.

1.6 Types of Dropshipping Revenue Models

Like many other businesses, drop-shipping also has some revenue models. The frontend of any business is as important as the backend of it. In any business, the primary purpose of giving your business service or of selling some product is to generate revenue and earn money. Here is some different kind of business models for drop-shipping.

Direct Sales Model :

This model is the most commonly used revenue earning models adopted by different companies. In this model, you have an online platform for a customer, which is a website most of the time, where a customer places an order and then you deliver the product as soon as the customer pays you. In this model, you receive direct payment from the customer so that it’s called a direct sales model.

Freemium Model :

This is a model in which you provide some of the services as free to your customer but your policy is to charge for some premium features and facilities. This is somehow different from the premium model because in this you don’t pay anything for the basic services which you use.

In drop-shipping, this model is implemented as like if some customer visits your site for the very first time and want to buy only a single product, then he doesn’t have to pay shipping charges. But if someone uses to buy a number of items frequently, then there would be shipment charges, which in terms depends upon the number of products he bought.

Subscription Model :

Subscription is one of the best strategies to retain customers and have reliable income streams. Companies which rely on subscription revenue models deliver the customers products and services and charge them a fee for the same at regular or scheduled intervals.

Credit Model :

This model is basically based on “buy now, pay later” policy. In this customer, use to buy products and pay later on. In this regard, the customer buys products on credit and pay later with interest. Income generated from this includes profit plus the interest rate.

1.7 Advantages of Dropshipping

Like many other businesses, drop-shipping also have some pros and cons. Here are some advantages of drop-shipping which shows how this business can benefit you and make you earn money. Following are some of its positive factors:

The Startup Costs Are Smaller :

Whenever the idea of startup arises in your mind, the first thing which pops up is a good chunk of capital is required for this. But this problem is resolved in terms if you start your business as drop-shipping. Because this doesn’t require much more investment. All you need is an online platform for your customer and a supplier which will deliver the product to the customer.

Offer A Wide Range Of Products :

The more range of products you have, the more profit you will earn. In case of drop-shipping, you can offer as many products as you can. Because you don’t need to worry about the products, their sizes, and colors. All you have to do is to offer products on your site.

Testing Out New Product :

In drop-shipping, you don’t need to worry if you want to expand your business in terms of increasing the number of products. Because you don’t own any product. Just upload that specific product on your platform, then wait for the customer for its response. If that product gains more customer’s attention and you start earning a good amount of revenue, then maintain that product for future, otherwise just drop it from your site.

Time-Saving :

If you ore organizing your stock and prepare it for delivery by yourself, then it could consume your much time. All you can do it that gives this task to some third-party and save your time. In this way, you can utilize your time for your business and other activities which help you to grow you in your earnings.

1.8 Disadvantages of Dropshipping

In any business, there are some pros which consider as the positive side of that, but it must have some cons which are considered to be its negative factors. Following are some disadvantages of drop-shipping:

Stock Shortage :

As in drop-shipping, you don’t own any product. But in case a customer comes to you and need any product instantly and you sold that specific product a couple of minutes ago. Then it would be difficult for you to arrange that product for the customer on run-time.

Higher Fulfillment Cost :

In drop-shipping, you pay the real price of stocking, picking, packing, and shipping. This means that as your sales grow your price of the product increases. So, your overall revenue and profit will decrease in this case.

Customer Service Issues :

As you don’t own any of the product which you are selling, so there would be a high rate of customer issues regarding products. In this way, your customer market will have dreadful consequences. No new customers will come to your website to buy goods, because your word-of-mouth will be like a company who don’t care about its customer.

A Vast Amount of Competition :

Just like you are doing this business considering it with putting fewer efforts, same like that many others also do this same. There would be huge competitors in front of you standing in the market, which will cause your business to get in the loss. This how all your dream of earning money in bed will be destroyed.

Processing Your Orders Can Be Difficult :

Many of the drop-shipping companies deal with many wholesalers and retailer at the same time for buying different products. And when it comes to processing the order for different suppliers, then there would be many complexities and problems which arises. So, it would be a problematic situation for drop-shippers.

2. Start & Grow A Dropshipping Business As A Seller

Drop-shipping is a business in which you have an online platform where customer come and order their desired product. Then you contact a supplier to buy that product form three as a wholesaler and provide that product to your customer.

2.1 Finding Right Dropshipping Products To Sell

2.2 Finding & Working With Suppliers

2.3 How Do You Wants To Compete

2.4 Choose The Best Platform

2.5 Dropshipping With Your Own Online Store

2.6 Dropshipping Sales Channels

2.7 Advertising & Drive Traffic To Your Store

2.9 Handling Returns

2.10 Provide Best-In-Class Support

Start eCommerce Store

Three kinds of people who are involved in this whole process :

- Customer, who places an order

- Shipper, who is working as a middle man

- Seller, who actually sells the product

Basically, those sellers who don’t have any online platform to sell their products, this opportunity is beneficial for them. They will have a chance to sell more and more products to sell and earn a profit. Secondly, you as a seller can contract to more than one drop-shipper. In this way, if any one of them left you or break a contract with you, then you shouldn’t have a problem for that.

On the other hand, there is also some kind of loss in working as a seller. You don’t have anything which you own by yourself for your company. As soon as the drop-shipper finishes contract with you for buying your products, then you’ll have nothing in replacement of this. The only thing you will leave within to sell your products on your own.

You’ll have to do yourself the advertise of your business, marketing of your business, engaging customers for your business, and have to do all by your own for your business.

This how it would be more difficult and expensive for you to do all these things on your own and in the same way you will be left will less amount of profit.

2.1 Finding Right Dropshipping Products To Sell

Considering the drop-shipping business as a seller, one should know how it would be beneficial and what products are right profitable to sell. In this case, you have to do some kind of research. You should know about which products are popular with respect to some season and which products are a four-seasonal product which you can sell all over the year. In this regard, you have to visit some different kind of e-commerce business website, so that you can get some idea about which products you should sell.

Finding the right product to sell is very important and it is one of the biggest mistakes some people make while creating an eCommerce business. When we look online, it always seems like everything is sold already and there are no spaces left for us. It must not always be so; here are five ways you can find a product to sell.

Sell what you are passionate about.

Yes, it is always easier to flow with your area of passion. It is always easier to market a product when you have an underlying passion for that niche. If you love good clothes, shoes and other fashion products, it will be easier for you to start a fashion store online. Why? Because customers want to buy from people who they believe share like passions with them. This must be done on the right track too. Your passion must be in line with what people also need.

Find a problem and solve it.

There are lots of problems in the world. In fact, we can never exhaust problems. You must find a pain point and proffer solution to it through your eCommerce store. Look around you and see what problem appeals more to you and solve it. People particularly don't joke with their health and will pay anything to be healthy. This is just one key area you can take advantage of.

Find the latest trends and capitalize on them

The world is dynamic not static. Things come and go and this makes the world interesting. A trend is a new way of doing something in a particular field.

You can easily find trends through industry research publications, social media, google trends, trend hunter and generally on online forums.

Your ability to quickly get in, create products that suit the trend and become an industry name will count a lot.

Use customer review and feedback

You can find the best products to start with when you pay attention to customer reviews and feedback on other giant stores.

When you check a feedback, what new problems or wishes does a customer raise for improvement. These could just be a pointer for the need of a new product and you can capitalize on this valuable information.

Do Keyword Research

People are constantly searching for products online. Searching for keyword means determining the search queries people are making for a particular product and what they asking for. Google is the best place to get information on keywords.

2.2 Finding & Working With Suppliers

Finding and working with a supplier is somehow a critical task in the business of drop-shipping. Because in the start, you don’t even know who is working as a supplier and once you find then there would be another challenge that you have to whether their products are of good quality or not. Here I am going to explain how you can find the right supplier and work with him.

Research :

Once you decide which niche of the product you will sell, then search which drop-shipping suppliers are out there. Then choose which suits you the best according to your need. You might need to choose whether to go with a domestic or overseas supplier depending on the number of suppliers in your chosen product niche.

Contact Supplier :

Talk to the supplier with which you want to work, and start a relationship with them. Once you start this, you will get a chance to question them about their services and where they are providing their services. This will be your first-hand experience before actually committing to them.

Order Samples From Suppliers :

Afterward, order a sample from the supplier you want to work with. Check the quality of the product. Then you will come to know whether you are satisfied with the product quality or not. This how you can decide either you will commit with them or not.

Order from Competitors :

Now, search that to which other drop-shippers your supplier is supplying product of your same niche. The order that same product from your competitor. Check its quality, packaging, service for them and their custom labeling which the supplier is giving to them.

So, the conclusion is here. First search out for the suppliers, then contact them. Start building a relationship with them. Afterward, order a sample product according to your niche. Check the quality of the product and if you satisfy then place an order.

2.3 How Do You Wants To Compete

As you know now that drop-shipping is a business which many people use to start to earn a profit. But not exactly everybody is successful in this. But there are some people who are earning huge profit and making money by day-and-night.

As a drop-shipper, you should know about the market place and your competitors. This how you'll be able to do compete with them by identifying the negative things about them.

Know Your Competitors :

First of all, you should know who your competitors are. Make a list of this, and also do this work for those who are indirectly in competition with your business. Then make some strategy on your own that how can you compete with them and make your business better against them.

Know the products of your competitors :

In this regard, you have to check and analyze your niche and compare it with your competitors. In this way, you’ll be able to know that which products are there for which you have to deliver better quality to your customer and how you can make a good packaging and custom labeling of your product.

Know about the weaknesses of your competitors :

Visit your competitor’s website and read their customer reviews about the products related to your niche. Note down all of the negative comments and reviews about them. List that up and start making progress of your goods in which your competitors are not up to the mark. This how you can earn more profit against your competitors.

Know about the strategies of your competitors :

This is somehow a hard task to do, but by keen observation, you can do this. Observe your competitor's strategy of marketing, how they advertise their products, who are their customers, and the most important which distribution channel they are using. In this way, you will be able to clear more about your competitors.

2.4 Select Best Shipping Gateway

Shipping is very important for an e-commerce store because this is basically how your product will get to the hands of the buyer. Shipping costs if not calculated well can hinder you from making profits or progress. There are some things you must put in place before shipping. Your shipping rates and your shipping method must be considered. You must also consider the weight of the product you are shipping and the shipping company you will use or not.

The best way to get customers however is to offer them free shipping. Humans naturally love free things and when they see that things are free, they are naturally going to be attracted to it. You should however put part of the shipping into the price of the product for profit sake. This is you sharing the cost with the customer.

Things you must consider before shipping:

1. Product weight and size

This is the first determinant of the type of shipping method you will use. If the products you sell are all the same in size and weight, you have solved half of the problem. The remaining will now be to ascertain the distance of the buyer.

Size and weight matters a lot. There is a big difference in shipping a refrigerator and shipping a pair of shoe.

2. Shipping destination

How far from your base are you making the shipping or delivery to? You must always consider the time taken for the product to reach the buyer. Close distances or same city deliveries always attract lower fees when compared to farther distances.

3. Shipping/ delivery options

The speed for delivery also matters when shipping a product. Same day delivery often costs more than 3-7 days. You can always give this option to your buyers if it is ok by them.

2.5 Choosing the Best Platform

SAAS Platforms (Software As A Service)

Opensource Platforms

Get Developed Own Solution (Hire IT Team or Outsource to IT Firm)

At present there are many Content Management Systems (CMS) for Dropshipping that are totally free and completely reliable. All of them are designed to a greater or lesser extent so that they can be used by people without too much technical knowledge.

In addition, being open source tools and known by a large number of professionals, there are many companies and freelancers that for a small fee can retouch or expand those features that you cannot do on your own.

CMS that are also recommended would be: Magento, Oscommerce, Virtuemart (Joomla), Zencart, Opencart, Digistore or Drupal Ecommerce.

All of them allow the selection of different design templates, both free and paid, that will cover all your needs. Choose a template with an attractive, usable and action-oriented design to create your online store.

When choosing the hosting, take into account that you have the CMS that you have chosen pre-installed, so the installation will be automatic and simple.

If you want to sell without worrying about technical things, it is best to use an online store service like Shoppiko, especially if you are just starting out.

2.10 Provide Best-In-Class Support

Customer Support :

Hiring a customer support executive for your dropshipping store may prove to be beneficial in providing excellent customer support. A customer support center or a contact center with a customer support executive will make your customers rely even more on you.

They will find a suitable way where your business will not only handle their calls but also respond to their queries through e-mails, faxes and even live chats.

When your customers are sure enough that there is a communication route which makes it quite easy for them to put forward their complaints or queries, they will rely easily on your exceptional customer support system and connect themselves to your business.

Timely Response :

Responding timely to your customers can make a lot of difference. Your drops-hipping business can be a success or failure. Your customers don't want to wait for days or hours for getting the answers to their queries. They expect you to be quick when it comes to their problems.

Making delays in responding to them would lead to the loss of potential customers. It is a must that you make it an essential part of your exceptional customer support system if you want your business to run successfully.

Use the FAQ tool :

You may use the FAQ tool to provide exceptional customer support in the drop-shipping business. A FAQ page is a page comprising of the most frequently asked questions that would make it easier for your customers to know various procedures they need to follow and the terms and policies of your business.

Remember That :

- Make the most frequently asked queries its part.

- The language used should be quite simple as if you are doing it to make things easier for customers and not more difficult.

- Categorize the questions and answers well.

- Maintain your FAQs regularly.

3. Start & Grow A Dropshipping Business As A Shipper/Supplier

Running an ecommerce can be a herculean task if done alone or without proper knowledge. That is why it is recommended that one has a team working together to achieve more. In this section, we will look at getting a store admin, managing orders and managing inventory.

3.1 Finding Right Products To Dropship

3.2 Finding & Working With Sellers/Retailers

3.3 How Do You Wants To Compete

3.4 Choose The Best Platform

3.5 Setup Shipping Partner

3.6 Provide Best-In-Class Support

Run eCommerce Store

3.1 Finding Right Products To Dropship

Store administration is very important for Dropshipping success. The processes involved are as important as starting out. It is best to get an admin staff if you will be involved in the branding and marketing.

Store administration has to do with controlling and managing the day to day activities that keep the store running successfully. This would involve taking inventory of products available, stocking and taking and fulfilling orders.

3.2 Finding & Working With Sellers/Retailers

Managing inventory has to do with making sure there are always products available for sales and delivery behind the eCommerce site. This could be a challenge for small businesses that may not have all the funds to keep all the products they are willing to offer.

Use an inventory management system

Most Content Management Systems come with a pre-installed inventory management system. You can take advantage of these tools. There are also lots existing software that can manage our stores perfectly.

Inventory management software can help show real-time tracking of all of your sales and inventory, so you can manage multiple locations through one interface. You will have all the stock levels of your stores in one place.

You can also have a staff dedicated to be in charge of tracking and managing the inventory before it comes short.

3.3 How Do You Wants To Compete

Receiving an order is one of the major goals of an eCommerce owner set. This could mean that the customer has paid already or will pay on delivery. Order management has to do with keeping proper track of data, people, processes that are involved in the order process. It has to do with everything that involves taking and filling orders.

Before now, order management was a paper process but with new systems and software available, it can be completely automated. Some CMS come with order management systems pre-installed already. Other software like Handshake can also be used to manage and track all order processes.

3.4 Choose The Best Platform

"Abandoned carts" in an online store is a metric that worries all eCommerce owners or those in charge of managing an ecommerce.

For some reason, at a certain point in the purchase process, the user decides to leave the cart before paying.

In these cases the web analytics plays a fundamental role since through a conversion funnel it could be analyzed if the problem is at some point of the purchase process.

These are just some reasons why a user may decide not to finalize the purchase in an online store:

The sum of the shipping costs slows down the customer

Payment options are limited

An unusable order form

Some error in the payment gateway

However, it is also possible that simply the user has been distracted by something else, has received a call, had to go without time to complete the purchase.

There are tools allow you to send several emails to user to remind them that they have not finalized their purchase.

You can even customize some type of fixed or percentage discount on the price of the product or shipping costs to seduce the most reticent customers.

If the reason for abandonment is a serious problem in your platform then you might just need to focus on fixing it but if it another reason than sending emails can do the magic.

3.5 Setup Shipping Partner

For many e-Commerce sellers, just thinking about returns and especially international returns, is a real headache. They change the profit margin; they cause a lot of logistical and administrative problems.

A policy and logistics of returns is needed that can be executed perfectly, with transparent processes to foster trust with the client, which on the other hand, are feasible and profitable for the seller. This is because the rationalization of a return policy is vital to success in an e-commerce market.

From the customer's perspective, online shopping means sacrificing the ability to see, touch and test an item in exchange for other benefits, such as convenience, a better price or the availability of a certain product. In spite of that, the idea that the product may or may not be imagined or may arrive damaged creates a need in the client to know exactly how to return the products and receive their money back. An unclear refund policy is the second reason why the purchase process is abandoned.

Research conducted by UPS and ComScore recently revealed that 53% of customers were satisfied when the return policy and procedure was clear and transparent.

When selecting a retailer, buyers value return policies that offer convenience and money-saving initiatives. A pre-printed return label on the box, the possibility of returning items to a store and - above all, returns free of additional costs - are factors that increase the purchase intention.

For smaller companies, working with a local partner (smaller or more specialized) for the management of returns can be a solution: Clients can send their unwanted merchandise back to an address in your own country. The seller can choose whether to include a label for free returns or let the consumer pay for the return: As it is a local shipment, they will be efficient expenses. The local partner who handles the return and makes all the administrative procedures necessary for the operation. Shipments to the exterior warehouse of this vendor are allied in order to reduce costs. In this way, the seller can offer the customer greater comfort without increasing the price of the return.

Returns are a fundamental success factor for international online retail. Customers include the return policy in the purchase decision, and the return experience is an important part of the impression that the retailer makes in the buyer. For retailers, international returns require a good deal of strategic planning in order to minimize costs, maximize customer confidence and comfort, and make the entire project feasible in light of profitability. The decision to handle and manage returns from home or through subcontracting to a logistics provider or local partner depends on the scale of the company's international business and available resources.

3.6 Provide Best-In-Class Support

Customer Support :

Hiring a customer support executive for your dropshipping store may prove to be beneficial in providing excellent customer support. A customer support center or a contact center with a customer support executive will make your customers rely even more on you.

They will find a suitable way where your business will not only handle their calls but also respond to their queries through e-mails, faxes and even live chats.

When your customers are sure enough that there is a communication route which makes it quite easy for them to put forward their complaints or queries, they will rely easily on your exceptional customer support system and connect themselves to your business.

Timely Response :

Responding timely to your customers can make a lot of difference. Your drops-hipping business can be a success or failure. Your customers don't want to wait for days or hours for getting the answers to their queries. They expect you to be quick when it comes to their problems.

Making delays in responding to them would lead to the loss of potential customers. It is a must that you make it an essential part of your exceptional customer support system if you want your business to run successfully.

Use the FAQ tool :

You may use the FAQ tool to provide exceptional customer support in the drop-shipping business. A FAQ page is a page comprising of the most frequently asked questions that would make it easier for your customers to know various procedures they need to follow and the terms and policies of your business.

Remember That :

- Make the most frequently asked queries its part.

- The language used should be quite simple as if you are doing it to make things easier for customers and not more difficult.

- Categorize the questions and answers well.

- Maintain your FAQs regularly.

4. Future of A Dropshipping

Dropshipping is a selling approach as sellers don’t need to have products in bulk quantity stored somewhere. As a substitute, retailers look for partnerships with a vendor that keeps its very own inventory of merchandise. Retailers forward client orders and load information to them, and the vendors deliver the order straightly to the buyer.

4.1 Mobile Dropshipping

4.2 Personalize Dropshipping

4.3 Artifical Intelligence (AI) Based Dropshipping

4.4 Voice Based Dropshipping

4.5 Augmented Reality Based Dropshipping

4.6 Virtual Reality Based Dropshipping

4.7 Decentralize Dropshipping

Future of a Dropshipping

The method of dropshipping has become a modern-day fashion which has taken over the eCommerce enterprise. Because that is the maximum dependable manner to mitigate the loss of profits and efforts. Many owners of the stores transformed their enterprise to a drop shipping line of work that assisted them in enhancing the whole business development. This today's trend provides the most significant advantage for small enterprise owners who can't make investments and deals within the initial stage in their startup. However, the future of dropshipping is going to hit the marks as it has numerous benefits to offer such as: having unlimited inventory, increased lifetime value of customers, no need to handle returns, reduced risk, lower costs of merchandise, and ensures practicality.

4.1 Mobile Dropshipping

The latest technology of smartphones allows you to discover any store or online business through smartphones effortlessly. With the help of mobile Apps, you could dropship in which the sellers/suppliers can control stock and orders on their own. What you can do with a mobile app is:

- Supplier Dashboard

- Order Control

- Easy Contacts to Resellers

- Reseller Profile Management

- Supplier can add/edit Merchandise

- The suppliers can view their product listing

- The suppliers can view their transaction listing

- A supplier can create product attributes

The dealers can without delay deliver products from the storage areas to the purchaser. The sellers need to make connections with vendors so they will send the product straight away to the customers.

4.2 Personalize Dropshipping

Personalization has become one of the most used methods for making merchandise by yourself among clients. A personally designed product permits a customer to distinguish from other people, and that is the reason such a lot of individuals need to shop for a custom designed product even it is expensive than regular items. It's viable to selling personalized merchandise inside the dropshipping commercial enterprise and it ought to be worthwhile in the future.

It also strengthens the connection between sellers and customers as selling personalized merchandise permit sellers to have clear communication with buyers due to the fact clients may request for the product they want. So, sellers have an idea from consumer's request, after which providing consumers with the best merchandise. It is beneficial for sellers to recognize the modern consumer market tendencies on the way to discover the subsequent niches.

Selling personalized merchandise permit sellers do not need to put together too many finished items due to the fact maximum of custom designed products are defective products before getting hold of any request from customers. Furthermore, promoting personalized products enables to reduced stores' sales stress due to the smaller range of finished merchandise.

Generally, the prices of personalized products are a great deal higher than regular merchandise, that means that sellers can make more income from the personalized merchandise dropshipping enterprise consisting of customized mugs, hats, etc.

4.3 Artifical Intelligence (AI) Based Dropshipping

Artificial intelligence (AI) technology lets e-trade agencies to grow confidently. Currently, an e-commerce shop proprietor can utilize AI to count on needs and discovers the most suitable advertising and customer facilities.

AI is a model of human intelligence using computer structures, which incorporates getting to know, reasoning, and correction. Few of its use instances comprise professional structures, machine vision, and speech identifying as it may recognize diverse styles and allow customers to get more significant analytical insights on various platforms. The tools that can be adapted in drop shipping are:

Chatbot :

E-trade retailers make use of chatbots to serve their clients higher to provide a seamless experience. If you have a drop shipping virtual shop, you can function it with chatbots.

Autocomplete Search :

Via putting in an autocomplete seek plugin on an internet-based store, you can assume an improved conversion, because the algorithms will offer tips on types keywords. Consequently, it permits for upselling and go-promoting to arise organically, so users wouldn’t sense being bombarded by commercials.

Potential Clients :

Retargeting is a type of marketing wherein the focused audience have formerly visited the website. The tool used for this method is banner advertisements which were displayed on sites that they go to later on.

Predictive Statistics :

AI predictive statistics significantly helps businesses in lead technology and CRM frameworks as it identifies possibilities and presents competitive benefits on having new agencies.

4.4 Voice Based Dropshipping

Voice-activated gadgets together with the Echo Dot are also growing in reputation. Individuals don't even have to arise to switch off the lights, a whole lot less order something online.

However, this will have constraints in the key-word search and SEO strategies, as humans tend to apply particular words and terms while looking by using voice. For one issue, voice searches tend to be longer and phrased as queries. Additionally, using voice search assumes to be a chain of queries that makes sense if you get all of the questions together. Don't forget "traditional" key-word search, but surely know how to adapt your keyword search and SEO processes to deal with customers who're the users of voice search.

4.5 Augmented Reality Based Dropshipping

Augmented reality indicates a laptop-generated sensory in the actual world. Augmented reality can be encountered through your cellphone, to your pc or even especially augmented reality glasses like Google Glass. Augmented reality E-business lets in you to make buys for your mobile gadget or computing device.

As a result, over the following few years you'll see it make bigger into different industries like medical, books, and undoubtedly, there's augmented reality E-business, and that will help you to visualize the purchases you are going to make, enhance in your shopping experience, and allows you to buy customized products online.

The benefits of augmented reality are endless for online shops and E-business. Augmented reality is assumed to alternate the arena of E-commerce as we realize it these days, and so will make an impact on different components of the E-commerce business, as promoting and advertising itself.

4.6 Virtual Reality Based Dropshipping

Virtual reality provides a 360° view of an actual-world scene. As we've seen virtual reality take over the gaming enterprise. Additionally, with brands such as Oculus and HTC presenting virtual feels for the senses, clients can enjoy a one-of-a-kind world truly via carrying a headset. Virtual reality E-business permits you to buy the merchandise only with the use of your eye movements.

There are at least 5 appropriate motives that nearly any E-business store need to recollect dropshipping, and they are.

A Huge Product Presentation - Drop shipping lets traders to provide a lot more items for sale than thinking of what must be done to have the retailer store everything in the inventory.

Quick Supply In The Marketplace - Drop shipping mitigates the risk of waiting because when merchandise is shipped from the distributor or producer to the retailers; they reach out when they are asked for, and it may take a long time. In some instances, this will be for some weeks. But with drop shipping, a retailer can begin selling the instant the item is posted on the E-business website.

Discover New Strains - Drop shipping provides retailers a method to test new merchandise while not having to bring in inventory.

Reduce The Funding - because drop-shipping agreements usually do no longer need any prematurely funding; a store owner can notably reduce its investment in merchandise.

More Fabulous Time - In a drop shipping system, the seller does no longer acquire, stack, store, pull, wrap, or deliver products because all of those responsibilities are time-consuming, which in turn means that drop shipping saves the time.

4.7 Decentralize Dropshipping

Decentralized drop shipping is by the prospect, the cheapest choice to get commenced. Hence, it is for individuals who would opt to keep startup costs as little as viable and are much less worried about margins. It is likewise an excellent alternative for someone who doesn't want to keep and manage the merchandise in the warehouse. Decentralized drop shipping has various benefits, and some of them are:

Low Startup Expenses - the most significant advantage of drop shipping is the low startup fees as you do not have inventory so, you won't have any inventory prices which commonly are the most massive value for a new E-commerce commercial enterprise.

Deep Threat - as you don't buy your stock upfront you aren't taking the chance of having objects you may not sell.

Streamline Sales - Dropship partners will take on the responsibilities of choosing, packing and transporting the product to the customer. The dropship choice provides convenience and performance so that you can control your commercial enterprise from everywhere on the Earth.

I am considering that almost everything has moved to the internet and there're billions of different matters to promote to billions of humans. E-commerce is still developing at a quick tempo and will take over the retail market in term general sale pretty quickly.