Instructions on how to make money on the online store

Instructions on how to make money on the online store
Instructions on how to make money on the online store

Instructions on how to make money on the online store

One of the main problems faced by online stores is the implementation process. This is due to the long delivery time, which leads to an increase in delivery costs, as well as to an increase in customer service costs.

To correct this, new forms of cooperation were used, which significantly improved the entire logistics of distribution. Dropshipping is most often used for this.

Dropshipping is a logistics model characteristic of online sales, which consists in transferring the delivery process to the supplier. Online stores cooperate with wholesalers who carry out the entire delivery process. Information about orders placed on the site is transmitted to the supplier, who delivers the goods directly to the buyer. It is thanks to this model that online stores do not have their own warehouses - they sell goods that the distributor has.

After mastering the dropshipping process in the domestic market, you can safely switch to foreign ones, such as Amazon or Etsy. In order to actively sell your goods there, you do not need to register a company — just create a showcase on the site, and now you are already trading for the whole world. In order to deliver your goods abroad, you need to find a logistics company, for example, SargoSupport, which will help with the delivery of your goods to global marketplaces.

How to start making money on dropshipping?

Dropshipping allows you to sell products without prior purchase. This is an ideal opportunity for people who do not have a large budget to start their own business. How to do it in just a few steps?

Choose a distributor
Choosing a supplier is an extremely important aspect that should be done at the very beginning. However, before you decide to start your own business, think about what you want to offer your customers.

The theme of the store is the basis of your business, because your target group, general interest in the offer and sales volume depend on it. Analyze the behavior of consumers who may be inclined to shop in your store, as well as future sales trends.

Also remember that the supplier must offer a wide range of products, as well as attractive terms of cooperation. Don't expect big discounts first. After all, there is no business without risk and distributors know it.

Create an online store
The next step will be to create a "virtual platform" where you can sell goods that will later be delivered by your distributor. Take care of the appropriate graphics, content and interesting website design. Remember also that a good product and a good website are not enough to make a high profit, because many factors affect the purchase, such as the speed of the website, the price comparison mechanism or marketing activities.

However, if you have a small budget, you should use sites such as where you can create your own online store.

Conduct marketing activities
In the case of an online store, all marketing actions play an important role, thanks to which sellers can attract customers and generate more traffic on the website. Examples of such actions:

- paid online advertising (Google Ads, Facebook Ads)
- print advertising
- social media
- advertising newsletter
- website optimization for SEO
Remember that all promotion and customer acquisition is on your side.

How to make money on dropshipping?
The process of direct delivery consists in the fact that the supplier offers goods at wholesale prices, and to you - at retail or individually set by you. The difference between these prices is your profit. However, remember that there are price comparison websites that allow consumers to view the same products at different prices from different retailers. Therefore, try to make your products slightly more expensive than the products offered by other online stores.

reduction of operating costs: no need to have your own warehouse and no need to hire people to carry out the process of packaging and sending parcels
optimization of the delivery process: reduction of lead time
no need to invest in products offered on the site: avoid the risk of being left with unsold goods
focusing only on store management and marketing activities: less business responsibilities

reduced customer service: does not affect the condition of the goods and delivery time
responsibility for the complaints process
the need to store returned goods
great competition in the market
Keep in mind that the direct delivery model can be a very profitable investment for you, but it is still worth taking care of the client, who is increasingly facing disadvantages associated with this type of business.

Possession of outdated inventory level information
You sell a product that doesn't exist, and then it turns out to be unavailable. This will affect the quality of service for customers who have purchased a product while waiting for it for a certain period. Very often, due to the lack of up-to-date information or delays, the customer refuses the order and additionally has to wait 14 days for a refund of their funds.

Tip: Update your inventory. Use the WMS system for this, that is, a program for managing goods in a warehouse.

Incorrect identification of the parcel by the customer
Very often wholesalers do not put information about the online store from which they received the order on the packages. For this reason, customers often receive packages from an unknown sender without being able to identify them before opening and finding out the contents.

Tip: Advise wholesalers to use cardboard boxes or ribbons with your logo or name for orders in your online store. Also, request information about your store on the label.

One store, several wholesalers
If you work with several distributors, and your customer places an order that includes products from different suppliers, he often has to pay more for delivery. Moreover, in such cases, the customer often receives his order in several packages separately from each warehouse, instead of picking up one parcel.

The Council. The high cost of delivery may cause the buyer to drop the basket. If he orders from 2 different wholesalers, pay for delivery from the one that offers cheaper delivery. Moreover, offer to send the goods from one distributor to another so that he packs the entire order in one package.