From carpet cleaning businesses to food and household item retailers, everyone is now trying to expand their audience and services. If you are a small business, then expanding the product line can be a very intimidating and challenging task for you as it takes a lot of back-end work before launching a new product line.
From concept designing to execution and physical conformance, it takes a lot of team effort and multiple vendors and suppliers. However, there is good news for small businesses, through dropshipping, you can expand your online businesses without worrying much about production processes.
What is Dropshipping?
Dropshipping is a solution that you can use to cut the hassle of going through production and supply chain processes. Dropshipping helps you sell products at your online store without having to worry about the production processes.
The process involves 3 parties; a supplier, you, and the customer. Once the item is purchased, the supplier directly ships it to the customer without you being involved. To understand the concept, the following three steps elaborate on what dropshipping is:
- A customer buys a product from your e-commerce website.
- You send the order information to your dropship supplier.
- The supplier prepares (picks, packs, and ships) the product directly to the customer without your involvement.
How Can Dropshipping Help In Expanding Businesses?
As per research, around 20-33% have adopted drop shipping in their online stores. Not just the smaller brands, but companies including Amazon, Zappos, and Sears also use dropshipping services.
Even the giants are trusting the dropshipping services because it provides ease and helps them do business without having to worry about the conception of the products. All you have to focus on then is branding and marketing. It is like half your work is sorted. Some of the benefits of using dropshipping are:
- You don't have to lock up your money to avail these services
- No cost or hassle of storage
- No stress of bills for storing inventory
- Cost-saving for warehouse, equipment, or staff
- No big teams required to manage the operations
- Get bulk prices without having to store items in bulk
Expanding Your Business with Drop Shipping
Let's have a look at how you can get into drop shipping to expand your existing business:
1. Try Potential Products with small InvestmentYou can initially try dropshipping with different products to see the results. Selling your own products is a long process, and if it doesn't become a hit in the market, then you're just stuck with that same product and cannot do much further.
With dropshipping, you can test a few items by marketing them on your website and see the results through tracking and analytics. If the product becomes popular and you start receiving enough orders, you have your results to take it forward from there. On the other hand, if it doesn't work for you, then you always have the room to try something else and work around it.
2. Sell Products That match with Your OwnLook for products that are similar to what you are already selling to make it more relatable for your audience. For example, if you are selling online stationery like notebooks and journals, then it is difficult to introduce a new product line on your own, but you can always select relevant products with dropshipping services. Start adding relevant bookcases, shelves, organizers, etc., that your audience would be interested in buying.
3. Get into New MarketsOnce you have entered dropshipping and feel like you are doing well with the products you selected, now is the time to expand your market. Try entering into different niches or products that your audience would be interested in.
Entering into a new market can be pretty rewarding for businesses; however, the prolonged procedure for operations makes it a hassle for many. With dropshipping, it gets easier to start dipping your toes in new markets. Without having to spend a lot of money in the process, you can still enter a new market and test how that goes for you.
4. Have an Eye on Your CompetitorsOr any business, it is essential to have a look at the competitors and keeping track of what they are up to. Staying up to date in terms of marketing and advertising your products is also essential. Keep in touch with the ongoing trends to stay in the limelight and improve your selling tactics. Sometimes people tend to introduce a product in the market and the next thing you know, it becomes a trend.
Every business starts introducing things that are trending and in demand. However, the real problem is after some time, the trend dies down, and businesses then have to deal with the remaining stock, which is there is a large quantity.
With drop shipping, you won't have to worry about stock waiting to be sold; rather, it all depends on the customer requirement. Sometimes people tend to introduce a product in the market and the next thing you know, it becomes a trend.
Every business starts introducing things that are trending and in demand. However, the real problem is after some time, the trend dies down, and businesses then have to deal with the remaining stock, which is there is a large quantity. With drop shipping, you won't have to worry about a big stock waiting to be sold; rather, it all depends on the customer requirement.
To Sum It Up
Expanding businesses is not easy, nor is it to enter a new market. There are a lot of risks and challenging obstacles on your way, which is why everyone tends to play safe and follow the path with minimum risks involved.
Dropshipping provides you a safety net where you can test waters and see if the products you are planning to sell have enough market or not? This way, you can decide without spending a massive amount of money.
Dropshipping enables businesses the most convenient method to expand their product line without having to worry about delivering products, managing inventory, hiring teams, or renting space for warehousing. There is a lot of convenience and ease for the sellers and doesn't include cost overheads either.
About the author
Shaheryar provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for Carpet Cleaning London.