How to Succeed with a Dropshipping Model

Dropshipping is a logistic management technique. It refers to a business model in which an e-commerce store does not keep the products it sells in stock. When a product is sold, the merchant notifies its supplier who then proceeds to ship the goods directly to the buyer. In other words, the e-commerce owner never sees or handles the product.

 

Dropshippping businesses have become more and more popular in recent years. The main reason for its popularity is the emergence of performance marketing solutions that provide e-commerce businesses with advanced ways to target and retarget their audience. Thanks to that, advertising has become more effective and easy to scale. Another key reason is the relative low cost of setting up a dropshipping store, particularly due to the fact that merchants do not have to invest a huge amount of money in inventory up front.

 

Some e-commerce platforms, such as Shopify, provide excellent solutions for dropshipping businesses. At PagBrasil we have been working closely with several merchants using Shopify to run their stores and we have asked them to share some tips on how to succeed with dropshipping. Check out the main advice below.

 

 

Tips for a Successful Dropshipping Store

 

Merchants that have a dropshipping store can face a variety of problems, from choosing the best software for their shop to finding a good supplier with a warehouse located somewhere with good connections with the destination country. The delivery is always the first issue for every dropshipping merchant. In many cases, it is very difficult for businesses to avoid lengthy waits for the deliveries.

 

For those selling to Brazil, this problem can be dramatically reduced by using ePacket (also called EuB) as a primary shipping method. After ePacket partnered with Correios, the Brazilian national postal service, parcels shipped through ePacket started to be prioritized and got delivered faster than the usual 30-40 days it takes for other packages to be delivered. However, it is not a definite solution, as ePacket does not ship liquids – including most cosmetics – and utilities tools, such as saws – considered as knives. Therefore, it is always important to try different shipping services to figure out which one works best for each business. In addition, providing clear information to the buyer regarding the delivery time, in addition to a way of tracking the parcels, can significantly reduce complaints.

 

Another common issue refers to the processing of the orders. In this case, finding the ideal processing software is key. Oberlo is the most popular tool for Shopify stores and it generally works very well. However, depending on how your dropshipping business is set up, other tools might provide better results. For instance, Dropified allows merchants to process the orders and place them at Aliexpress without the need to interact with a manager, who will only get involved in the process if there is any issue with the order – wrong address or lack of product in stock, for instance. With the proper software solution for each dropshipping store, merchants can save a lot of time on order processing and handle a bigger number of purchases on a daily basis.

 

Finally, finding the ideal supplier can also be challenging. Ideally, dropshipping stores should work with one supplier who can ship all the products sold at the store, as opposed to working with several third parties. It can take quite some time to find one, but it will play an important part in optimizing the delivery times.

 

Furthermore, if you are thinking about selling in Brazil with a Shopify dropshipping store, PagBrasil’s Shopify plugin is fully compatible with this business model. Thanks to the extension, merchants can easily offer the broadest set of local Brazilian payment methods at their stores, including installment payments and boleto bancário, and immediately increase their sales conversion.

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