5 Stages Of Dropshipping Business
Take a look at them and you’ll know where you are in the journey of drop shipping and where you are heading for with these 5 stages.
Stage 1 Beginner:
Dropshipping Products
- Daily order estimation:
0-10 by day for the best seller product
- Investment plan :
Low:
There is no upfront investment in inventory, allowing you to run the business with minimum funds in the Dropshipping model.
No Risk:
Risk-free as you are not tied up by any inventory.
- Competition:
Lack of Uniqueness:
The popularity of the product also means fierce competition. It’s hard to earn your share of the market when you are selling products that are no different than any others.
No Control Over the Inventory:
The Stock may run out while you’ve orders from your customers.
Long Processing Time:
This is subjected to the supplier’s inventory level and processing capability, it is between 3 to 5 days on average. Takes that much time to verify order information and get the products ready before shipping.
- Customer Experience
Place an order and left message for the AliExpress supplier: Please blindly dropship this item. When the client receives the parcel, the exact message turns out printed on the tracking label!
Stage 2 Start-up:
Dropshipping with Pre-stocked Inventory
- Daily order estimation:
10-50 daily orders for the best selling product
- Strength
Optimized Processing Time:
With your personal inventory, processing time is greatly reduced.
Awareness of Stock Status
You are clear about how many products are available to fulfill your orders. You have no concern for suppliers running out of stock.
- High Risk:
You’ve paid upfront for the inventory so you feel obliged to get your inventory sold.
- Customer Experience
Your customer opens the package and sees there are Chinese characters on the product packaging, it may cost you customers.
Stage 3 Pro:
Dropshipping with Custom Packaging
- Daily order estimation:
50-100 daily orders for best selling products
- Strength
Brand Presence:
A nice customized packaging with your logo and design helps a lot with the brand presence. You are easier to be identified by your customers now.
Fast Shipping:
Shipping has never been simpler and faster since you start working with a local supplier or a supplier who has a local warehouse that is near to your customers.
Stage 4 The One:
Dropship Customized Products
- Daily order estimation:
>100 daily order for the best selling product.
- Strength
More Control Over the Product:
You get more control over the product by customizing it. You finally get the chance to modify the product to fix the pain points of your customers.
Originality:
You become the one that customers will first think of when they decide to buy by means of providing products tailored to their true needs.
- Challenge
Finding the Right Factory:
It takes time and energy to find the right factory that understands your needs and can meet your requirements.
High Involvement Required:
You need to be more active in maintaining good communication with the factory to follow up the production.
Cash Flow Issue:
When you have trouble with the cash flow, your nightmare starts: Suppliers suspend the shipment until receiving your payments→Shipping gets delayed→Annoyed customers give bad reviews on social media and open disputes→Your sales fell and your funds get frozen on PayPal→You have no money to pay your suppliers.
If you can’t stop the vicious cycle, soon your business will die because the bigger your business grows the more working capital you will need.
Stage 5 Our Partner:
Long-term Partnership with SupDropshipping
It takes time to foster trust. Once our partnership is proved beneficial to both of us, let us relieve your stress of cash flow: you pay 30% deposit to us to enjoy a large quantity of inventory stocked in our warehouse that is ready to ship. We’ll take care of inventory management, follow up the production with the factory, apply serious quality control and make more efforts to improve the supply chain.
