Dropshipping is gaining more and more traction on the Internet nowadays. But did you know it’s already existed even before things got online?
Did you only hear heard about dropshipping recently? Let’s get you started. Considering dropshipping smartwatches? Read on to learn more.
What is Dropshipping?
Dropshipping is a model of e-commerce where the seller does not have the goods he is selling in stock or in-store. So how do they provide the products then?
The arrangement is like this: when the seller receives an order, they forward it to a supplier. The supplier fulfills the order and ships it straight to the buyer. The seller and supplier agree or contract to this arrangement beforehand.
Pros
One of the obvious advantages to this is the freedom of holding inventory of any product. The seller takes care of checking and verifying the order. This method takes inventory and shipping out of the equation. The seller can place extra effort into marketing or customer support. This removes overhead from warehousing while handling returns is less of a worry.
Another advantage is the owner has better control of the location. You can choose to function remotely, other business staff as well. You can succeed in this model by utilizing the Internet and cloud services. These days there are cloud services to help you handle many aspects of your business. Some can help with marketing, website, and database, or customer relationship management.
This flexibility is one feature of dropshipping that makes it very interesting.
Dropshipping has a lot of advantages. But what about the disadvantages? Let’s talk about some
Cons
Different business models come with different pros and cons. Dropshipping is no exception.
The attraction to dropshipping is in its versatility and “lightweight” nature. As a business owner, you’re free of most of the stock level burdens, which makes a lot of difference.
But it comes with its own set of complexities. In shipping, for example. Freedom from its responsibilities doesn’t mean freedom from its issues. If the supplier makes mistakes, it makes mistakes in your business’ name. The problem might resolve itself. But you’ll find yourself helpless in these situations while the damage takes place.
You may be free from the supply chain, but that’s its own disadvantage. And when you have many suppliers, stacking costs is another issue. One example is individual shipping costs for a single customer’s order.
Low profit is another major concern to consider with dropshipping. Many vendors will take advantage of the low capital setup by reducing prices.
You worry less about inventory. You can spend this extra time strategizing costs and optimizing the low-profit margins.
Sources:
https://www.shopify.com.ph/blog/what-is-dropshipping
https://www.bigcommerce.com/blog/dropshipping/#5-hard-truths-about-dropshipping-no-one-talks-about
Trend of Dropshipping
Google Trends shows us that interest in dropshipping continues to rise higher. This isn’t an indicator of possible success in this method of retail business. At least this shows how long dropshipping can still make an impact.
While people are still interested, more tech for dropshipping can be developed. As this happens, the dropshipping industry will become more robust and more resilient.
I pay my sincere respects to those affected by the crisis. But allow me to mention the increase of e-commerce in a year since COVID-19 became pandemic. More stores adopted dropshipping. This hints to us its potential for venture and value as a tool.
If you have an interest in doing dropshipping, you’re in a great time and position to do so. There’s a lot of resources that’ll help you get more confident about dropshipping. There are tools to make the process quicker. Newer ones are being developed to help you get an edge over competitors.
And since we’re talking about smartwatches, it’s been growing in acceptance.
Brands are quickly innovating and updating models, a sign of smartwatches’ growing popularity. And why not? It’s a pretty nifty device, fitting for the rising smart revolution.
They’re making them more fashionable too. That’s very welcome to me.
Sources:
https://dodropshipping.com/is-dropshipping-still-worth-it/
Which products are suitable for dropshipping?
If you’re wondering whether a certain product in your mind is a good idea for dropshipping, it probably is. There is little limiting you from dropshipping many kinds of products. Aside from country regulations and export bans of course. You have a wide array of products to choose from, and you can find success in a lot of them when done right.
So how do you do it right? Let me advise you: find a niche rather than hit or miss with trends.
Find a niche
Picking random, unrelated products is a usual mistake for newcomers to dropshipping. That’s not to say you’ll be unsuccessful, but unlikely in the long run.
I recommend having a long-term mindset for this venture. You can find a gem by hit-or-miss but you won’t be doing better than gambling. And you might pick up a lot of bad habits.
Find a niche you’re interested in. A product range you’re inclined to will make it easier and more fulfilling for you. Use tools like niche scraper to research and filter products. For Shopify: Oberlo, Sprocket, or Aliexpress-related software like UniteXpres Dropship or Aliexpress Dropshipping.
You can still watch out for trends but stick with those within your niche. You won’t miss out by limiting yourself this way. The longer your stay in your lane the more knowledgeable you are. The more you understand your niche’s industry, the better you can adapt and react. These are intangible skills that, though you can’t measure exactly,
- Increase your worth
- Translate to more profit in the future
- Establish your authority in that market, which,
- Adds value and trust to your brand
- Allow you to dictate better prices in the future
- Create loyalty
Position yourself well in the market and you’ll save yourself a lot of disappointments and money. Allow a step-by-step strategy to build your business brick by brick. You don’t have to be knowledgeable in marketing, that’s the beauty of doing business through the Internet. Things like product or market research are important but you don’t need a degree. You can invest time educating yourself and there are tools (free and paid) to help.
And of course, smartwatches! This is definitely a suitable choice. In the previous section, I mentioned that smartwatches are gaining popularity. Next, let’s see where and how we can start.
Sources:
https://www.xsellco.com/resources/how-to-choose-dropshipping-products-the-ultimate-guide/
https://outlane.co/now/8-best-alternatives-oberlo/
How do dropship smartwatches?
First of all, good job getting this far. Dropshipping, though simple to figure out, and easy to start for many, could still be daunting. But today you’ve already gotten many steps closer to starting on your own. Well done!
You need to get a list of suppliers to narrow down to. It’s important to note that partnering with the right people will do your business a lot of good.
But there comes the challenge of which supplier/s to reach out to. When you look for them in directories, you’ll find it’s difficult to further check their background. A Google search about them would not reveal a lot if any at all.
You can try some of the well-known marketplaces for dropshippers but prepare to pay a fee for some of them. An annual rate for members is likely for sites like Alibaba or SaleHoo. Below is a list of examples:
- Aliexpress
- DHGate
- Alibaba (mostly wholesale from here)
- Banggood
- CJDropshipping
- Chinabrands
You can also refer to curated collections of suppliers, such as the examples are below:
- Best 15 China Dropshipping Suppliers-How to Find them?
- Top 4 Chinese Dropshipping Suppliers You Need to Know
- Top 35 Online Wholesale Suppliers and Dropshippers in China (Full List Ever)
- How To Find The Best China Dropshipping Suppliers
As you browse more and more lists for suppliers, you can develop an understanding of the standard. Start to narrow down suppliers using this rough idea. Then you can develop more specific criteria later.
When you’ve narrowed down your choices further, you can start reaching out to them. Make sure to prepare enough for this phase. Doing so will help you make the right decision and avoid serious hitches. Those with satisfactory marks and experience with dropshipping is a good consideration.
Ask about how long they’ve been in business, or what they specialize in. What’s their track record with handling shipping, average handling time, or reach? How do they keep their stock feed up-to-date? Take a look at some more negotiation questions here and see what suits your needs.
Sources:
https://www.bigcommerce.com/blog/dropshipping-companies/#what-is-dropshipping
https://www.chinabrands.com/dropshipping/article-how-to-negotiate-with-suppliers-16534.html
https://alidropship.com/how-to-dropship-watches
Why do dropshipping with us?
I’m hoping I’ve already helped you learn some of the important things about dropshipping. But you still have some work to do.
What about which specific smartwatch products to dropship? You can’t afford to dropship random smartwatches you find. Even those you found attractive or sophisticated.
Why not let us help you out? We can show how we helped many clients succeed. Or you can check out some testimonials about us.
IWO has years of electronics experience integrating research, design, and sales in manufacturing. Our smartwatches are all designed by our own RD team. They’re certified with CE, RoHS, FCC, and more. We put a lot of effort into marketing and quality to ensure our products are reliable. We wanted to make sure they’re more than enough for your customers to love.
We started and gained traction in Southeast Asia. We already expanded further towards Russia and Europe (Portugal, Italy, Spain). As far as Brazil!
Since we’re the original manufacturers, you can expect the lowest pricing from us. Straight from our factories, built by years of strong competition especially in Shenzen.
So you’ve done your homework and now intent on dropshipping smartwatches? Don’t stop there. Think also about establishing your brand. Consider strategies and what would help set you apart from the competition. Those things help you find success in your venture also.
Of course, you don’t have to wait to figure out all that before you know what you’d be getting into. Feel free to reach out to us, even if you simply want to know more about IWO.
