RetailBX.sg - Dropship Needs Website?

Quote:

Originally Posted by FunPal (Post 30668)

Hi, I just want to know whether dropship needs to build a website? So far, seem to need also. And, is it better to do dropship for newbies? Cause no need stock inventory. :roll:

Hi there

Based on what I think..YES, you will need to have at least a website to carry out your drop ship business whether you plan to do it locally or international.

No doubt you can advertise your drop ship service in forums, but ultimately people wants to know more about you or your product. If you have 1 product for drop ship of course you can do it in forums, what if you have 100 products? 1000 products and so on? You will then require something to showcase them and also to allow purchase for them

I would not really say drop ship business is for new start up, believe it or not, drop shipping is really not that easy as you expect it will be ( Depending on the volume of your sales )

Yes it's true drop ship is a great way to start doing business online when you don't have the resource to keep stocks, buy stocks in bulk to get wholesale pricing and etc, but there is a few dis-advantage that might just get you "Killed" in this business if you don't take them seriously into account and this industry right now, is seriously saturated with lots of lousy/good drop shippers

If you have a few drop shippers that is willing to drop ship for you, don't get too hyped up first because at the end of the day after all the calculations, you might just end up earning just $3 for each item you drop ship

For eg you have a drop shipper namely ABC, ABC supplies ear piece at a drop ship price of $5 for you when normal retail price is $12.
You drop ship ( Sell ) at $10 and the shipping cost you at around lets say $2, so you have just earned a profit of $3 when your cost price is $5

Not forgetting there are tons and tons of people doing what you are thinking of doing, getting the same price from the drop shippers as what they are offering you, how can you beat them for their pricing? How can you stand out from them? What to do when a customer receive a defect product from you and if that really happens, it is YOU who bear the complain of the buyer as in their eyes, YOU and not your drop shippers sells the item to them

True, drop shipping don't require the stocking of inventory but there are a few downfalls to that. What if your drop shippers can't deliver the goods on time? What if the item you drop ship are already sold out or back ordered without you knowing as your drop shipper didn't update you about it? Not keeping any physical stocks means you can't get to know what you sell and this can be a bummer when customers ask you product questions!

So basically you got to sign up for a hosting account with a host company, set up a website, sign up for a domain name and all that adds up to the cost of doing drop shipping or online business as well

Well, I can go on and on for the pros and cons of doing drop shipping here but you can start of by doing some research on the net first to really understand what you are dealing with and then seat down, write up a business plan and then from there decide if you really have what it takes

Hope my opinion helps..Cheers!