Dropshipping is a popular ecommerce business model that can be profitable for supplement companies if it is used properly. Below is some basic information about dropshipping, how it works, and how you can make it a profitable model for your company.
What Is Dropshipping?
Dropshipping is a unique business model in which an online retailer lists products it does not keep in stock. Instead, these products come from different manufacturers and suppliers. After a customer places an order with the retailer, the retailer can collect the payment and use it to buy the product from the supplier or manufacturer. The supplier or retailer then sends the product directly to the customer. This model prevents the retailer from needing to keep inventory in stock. In addition, retailers who engage in dropshipping don't need to worry about the logistics or cost of shipping products to customers.
Is Dropshipping Profitable in 2018?
As a supplement company considering dropshipping as a business model, you may be asking yourself "is dropshipping profitable in 2018?" The world of supplement marketing is always changing, and a business model that once worked may not be effective now. However, dropshipping still has the potential to be profitable for your company if you utilize it properly.
How to Dropship Supplements Successfully
If you want to use dropshipping to market and sell supplements to consumers, you will face several challenges. Some of the challenges you must overcome in order to be successful include:
- Product selection. - Selecting the right products is essential to a successful dropshipping business. If you carry supplements that arrive damaged, are ineffective, or are of poor quality, you won't be able to maintain a solid customer base. To overcome this challenge, choose your product sources carefully and screen all supplements before you list them for sale.
- Adding products to your store. - After you have chosen the supplements you want to sell via dropshipping, you must add them to your online store. Doing this manually can be a long and complex process. Fortunately, you can now automate product importation to reduce errors and improve efficiency.
- Customizing products. - After you have chosen and imported the supplements you want to sell, you create product descriptions and other information consumers can use to decide whether they want to purchase the product. Although some online supplement retailers simply copy and paste the content from the manufacturer, this isn't the best approach. To optimize the profitability of your store, you need to write your own, customized descriptions.
- Pricing. - Finding the right price points for every supplement you sell is essential to the success of your business. If you price your products too low or apply discounts inappropriately, your profitability will suffer. However, if your prices are too high, you will lose potential customers. Engaging in a careful review of all pricing and discount structures is the best way to prevent both of these problems.
- Order fulfillment. - To keep customers, you need to be able to deliver supplement orders quickly. You also need to make sure that the correct products arrive in good condition. The best way to reduce errors and ensure efficient delivery is to automate these processes.
- Updating price and inventory changes. - When your manufacturers change their prices or your inventory of a given supplement changes, you need to be able to update your store accordingly. Otherwise, you may find yourself selling products at a loss and/or promising customers a product you cannot deliver. Automating these processes ensures that your website is updated in real time.
- Tracking shipments. - Even though your manufacturers or suppliers may be handling shipping for you, you still need to track these shipments to make sure they arrive to customers on time. Having this information also allows you to answer customers' questions about shipping accurately.
Dropshipping versus Fulfillment by Amazon
Although dropshipping may seem similar to Amazon FBA, it is actually different. With Amazon FBA, you must send your products to the Amazon warehouse before you begin selling. When the product sells, Amazon handles fulfillment and shipping for you. In both dropshipping and Amazon FBA, your business isn't required to fulfill or ship products. However, Amazon FBA requires you to acquire and handle the product, whereas dropshipping does not.
How to Get Started with Dropshipping
If you are ready to begin dropshipping supplements, getting started is easy. To establish a dropshipping business quickly:
1. Choose a niche.
The best way to create a successful dropshipping business is to choose a niche you know and understand. For example, you may decide to focus on weight loss supplements, heart health supplements, or a combination of related niches.
2. Find your suppliers.
The next step involves selecting suppliers that provide the quality products you need at the right price.
3. Set up your website.
The final step in the dropshipping process involves setting up your website to begin sales. Make sure your website is functional and easy to navigate.
StockNutra offers a wide variety of high quality supplements to dropshippers. Please contact us today to learn more.