Dropship e-commerce sites have the potential to earn big profits when companies have taken steps to prepare their website prior to opening for business.
If you are considering starting a dropship e-commerce business, preparation can increase the likelihood of profitability. Determining which products to sell and choosing a name for your business to start. There are several other important aspects that are likely to determine whether or not your business will be successful or another dot com disaster.
Reliable Supplier
The first step in starting any retail business is finding a reputable wholesale company. Since this company will have direct contact with your customers, it will be important that they can represent you well. Your products will need to be shipped quickly and securely. Also, consider how the items are likely to be packaged. Will it be acceptable for a customer to receive a diamond ring in an envelope? You may need to consider the pros and cons of having the merchandise shipped to you first so it can be repackaged.
Fast Shipping Company
E-Commerce Website
An e-commerce site will need an exceptional website. After all, this is the only interaction your customer will have with your company. The customer will need to feel confident that they can buy quality products from your site. Consider whether you can make this site or if you will need to hire a website builder to create a professional-looking site. Decide how many products you will be selling and how long it will likely take to list each product on your site.
Online or Telephone Customer Service
Determine how you plan to handle customer’s questions and concerns. Will you have a customer service phone line? Will you opt for an 800 number? Or do you plan to handle questions via a live chat option on your site? Having immediate support available for customers is important and can make a big difference in the number of sales you make.
E-Commerce Shopping Cart
Determine what forms of payment you will accept and which companies you would like to use to process the payment. Some of the options include PayPal, credit cards, and e-checks. There are several different companies that can process payments with various fees. It is important to check into the fees to determine which company will suit your needs best. Having an easy-to-use shopping cart can make a big difference in how many sales are completed.
E-Commerce Marketing
When you are not manufacturing the products and when you are not directly selling the products, you basically become a marketing company. Determine whether or not you want to market your company yourself. Even if you hire professionals it will be important to learn the basics of search engine optimization. Decide what sort of budget you will set aside for marketing and learn about free marketing options such as social media sites, like Facebook.
Business Accounting
Determine how you will track your business funds. If you are new to the business, you may want to consult with an accountant early on to learn about what business expenses you will need to track. There are several tax programs that make keeping track of sales and income fairly easy. Quickbooks, for example, can automatically download your information from credit cards, bank accounts, and your website and do the majority of the accounting work for you.