Many new online store owners with limited funds find dropshipping to be the most viable option. Nicolas Valentine, an expert in e-commerce and a successful entrepreneur, explains why he thinks it’s a smart idea to establish a business despite the fact that opinions are split.
In dropshipping, the retail store doesn’t keep stock of the products it offers; instead, the customer receives them directly from the manufacturer or distributor. As an alternative, dropshipping has the retailer get the product from another party and distribute it directly to the client, bypassing the traditional distribution channel.
In general, dropshipping can be an effective technique because it was created to help small businesses who lack the resources to have a large stock on hand.
According to Nicolas Valentine, founder of Valentine Group, a company that has been helping various companies develop in unsaturated markets like Mexico, the decision to implement dropshipping relies on the circumstances.
Valentine, who has founded and co-founded many 7- and 8-figure firms, thinks dropshipping is a good option if you’re just starting out and lack the credentials to launch a legitimate brand, or if you want to test the viability of your product before investing more time and money into it.
It’s risky to buy a lot of stock before you know how much interest there is in the product from consumers. Dropshipping helps you test your goods with a smaller audience and fewer dollars to see if it sells and to obtain valuable feedback from buyers.
On the other hand, there are additional factors to think about if you plan on engaging in dropshipping on a permanent basis. From what Valentine has seen, excessive shipping waits can result in unhappy customers, stopped payment sources, and even banned advertising accounts.
Because the shop doesn’t keep the product in stock, quality control is trickier, and you end up having to rely more on your China supplier. While Valentine acknowledges that Aliexpress is convenient, he advises his clients to seek out a private agent in China instead.
It is up to the individual business owner to decide whether or not they wish to engage in dropshipping. The general consensus is to use caution when selecting a supplier and not let price be the deciding factor, as price savings will be nullified by late or subpar deliveries.
It’s also better to specialise than to try to appeal to everyone with your store’s offerings. Assuming the store is a go-to in its field, customers are more likely to return. As an added precaution, don’t hand off everything to the supplier when it comes to shipping and delivery; keep up with your customers right up until the very end.
Several people have made their first internet purchase since the outbreak and have discovered how much more time and effort efficient it is to shop from the comfort of their own home. In light of this, Valentine suggests that e-commerce entrepreneurs aggressively seek out new clients.
