Dropshipping, how to manage an eCommerce without a warehouse
The fickle context of recent years has in fact caused a radical change in consumer purchasing habits, leading to the explosion of eCommerce.
To keep up with the constant changes, many companies have
made them the dropshopping model . Not all realities, especially small ones,
have capacious warehouses or structures dedicated to the storage of goods. But
how does it work and why should you choose this model to assert your business?
Dropshipping: what it is
If in the USA it appeared 10 years ago, our country has only recently experienced dropshipping. The term identifies a business model that allows you to sell certain products without necessarily owning them. In this way, the merchant entrusts to trusted third party suppliers (or dropshippers) the aspects concerning the storage, shipping and delivery of the products. The latter, therefore, manage the inventory on behalf of the eCommerce owner.
Dropshipping , in essence, is a model that allows entrepreneurs to outsource the management and shipping of products .
Dropshipping: minimum requirements
To start a dropshipping business, the following requirements must be met:
the owner of the online shop must have a VAT number ;
the second requirement concerns the registration in the
Register of Companies at the competent Chamber of Commerce;
INPS : the dropshipping business necessarily requires registration
in the social security management of the Merchants;
SCIA . It is essential to present the certified notification
of the start of business at the one-stop shop for production activities.
Failure to submit the forms puts the seller in a condition of irregularity
How does dropshipping work?
The dropshipping model is based on a very specific scheme:
- The seller signs an agreement with a dropshipper.
- The consumer places the order on an eCommerce.
- The eCommerce owner electronically delivers the order to his dropshipper.
- The supplier prepares the items and organizes the shipment, in the name of the owner.
- The dropshipper will receive a portion of the sales, the rest will go to those who manage the eCommerce.
What are the costs?
Let's analyze all the expenses that an online store owner has to incur to start a dropshipping business.
ECommerce site
As it is easy to deduce, the first expense to be budgeted is
certainly that relating to the creation of a website. The choice must fall on a
quality platform, which will be hosted on a space that ensures optimal
performance.
In this regard, a solution that provides the ideal features
to guarantee speed and security is PrestaShop Hosting, which offers maximum
compatibility with the most popular CMS in Europe for developing eCommerce.
Marketing strategy
In order for you to start a successful dropshipping business, it is very important to plan a suitable marketing strategy, aimed at promoting eCommerce.
Invest in SEO, start a blog, develop consistent
communication on social media, use emails to reach your potential customers.
Administrative costs
As we pointed out earlier, to open a dropshipping shop you
need to have a VAT number. This involves expenses for the accountant, INPS and
taxes.
Advantages and disadvantages of dropshipping
The benefits that dropshipping can guarantee are different, we list the three most obvious.
Low startup costs . Starting a dropshipping service is extremely cheap. Initial costs are low, especially when compared to other types of business models. You don't have to worry about keeping a warehouse, with all the expenses that go with it, and you don't even have to worry about storage or shipping.
Convenient management . You can manage an entire business
right from your laptop and there is no need to make high-level investments for
offices and warehouses. If your business were to expand, your costs will still
be quite low, especially when compared to the expenses faced by a traditional
company.
Versatility. He becomes your own boss and you set your own
rules. In addition to being able to choose the supplier closest to your needs,
you can dedicate the time you want to managing your eCommerce.
As in all areas, it is also necessary to evaluate the other
side of the coin before starting a business; therefore, let us also examine the
most significant disadvantages.
Reduced profit margins . Although dropshipping is a viable
business solution for managing sales, it should be emphasized that this system
initially involves not large earnings percentages. This is especially
noticeable when you enter a super competitive niche.
Competition . Since starting a dropshipping business
requires little investment, this low barrier to entry results in fierce
competition, with busier markets suffering more than others.
Timing of order fulfillment.
With this sales system, you don't have full control over the entire
fulfillment process. The processing time will depend on the efficiency of the
supplier entrusted with the dropshipping business.
How to find the best dropshippers in Italy?
Finding a high-profile supplier is the key to success with a dropshipping-based sales system. The management of activities such as warehouse, inventory, shipping, storage and everything related to the goods is of extreme importance and finding valid dropshippers is not that simple.
Once you have identified the category to which they belong, opt for suppliers who have significant experience behind them and evaluate on what price their products travel, as well as the competitiveness of shipping costs. In this regard, make sure that the delivery is handled with a certain speed: now, consumers expect to receive their orders in the shortest possible time. Finally, some sites will help you understand the quality of the dropshipper through customer feedback: therefore, carefully evaluate this aspect too.
Below, we offer a list of certified suppliers for
dropshipping in Italy.
Oberlo : It's the ideal resource center for Shopify users
and gives you access to thousands of suppliers on AliExpress. In just a few
clicks, you are able to select products, customize details and put items for
sale on your website.
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