What is dropshipping in simple words
Dropshipping is a business model in which the owner of an online store negotiates with a supplier or manufacturer to sell products on his behalf. In this case, the delivery of orders is handled by the latter. That is, the store founder only places goods on his site and attracts customers.
The profit depends on the margin. The higher it is, the greater the margin. Sometimes this is a fixed fee.
The main advantage of the dropshipping model is initially a small investment. To get started, you need to create a group in social networks or a website. You can buy an existing online store with a database of suppliers working on this model. You can also sell through Avito or Yulu. In addition to the low entry threshold, dropshipping has other advantages:
- There is no need to purchase and store goods, which means there is no need to spend money on renting a warehouse.
- You can easily change or expand the range.
- There is no specific location: partner and supplier can be thousands of kilometers away.
Of course, this scheme has two main disadvantages:
- High competition.
- All claims for quality, packaging, and delivery go to the online store.
- But, in general, there are much fewer risks here than with wholesale purchases.
What to look for when choosing suppliers for dropshipping Russia
So, first, it’s important to decide on a niche. In good demand are:
- goods for home and interior;
- goods for children, especially toys;
- smartwatches and fitness bracelets;
- radio controlled gadgets.
You should choose what you are interested in. The choice of categories also depends on the site where they will be sold. For example, if you are going to sell a couple of smartwatch models, a one-page page is enough.
But for clothes, you need an online store with a convenient catalog and filter. But clothes are harder to sell because there is no fitting option. Message boards are suitable for most categories.
Terms of cooperation
First of all, you should find out the prices, as well as the methods and speed of delivery. If the wholesale price is not much lower than the competitor’s minimum retail price, there is no point in such cooperation. You should also clarify whether there is a receipt of marriage and unsuitable goods.
It is important to find out what scheme the reward follows:
- An advance payment from the client, after which the partner pays the wholesale cost.
- Payment of the difference between the wholesale and retail prices after the customer has bought the order.
- Fixed cost.
- The first laugh is the least risky. But the other two do not carry great risks, but only if the supplier is verified.
Way of cooperation
You can negotiate with suppliers directly or through special services. In the first case, you need to independently create a trading platform: a page or a group in social networks, a landing page, or an online store.
The services provide a ready-made base of dropshipping suppliers and a ready-made online store. You need to select the supplier you are interested in, deploy, and configure the store, and then agree with the supplier. But such a scheme eats up part of the earnings due to the service commission.
Russian dropshipping suppliers
Supplier of Happiness dropshipping review
“Supplier of Happiness” specializes in the wholesale supply of “goods for adults” and offers a drop shipping service for online stores with the advantages in which Supplier of Happiness is independent:
contacts the buyer on behalf of the online store;
- receives confirmation of the order, method of payment, and delivery;
- completes and packs goods;
- prepares documents;
- gets paid;
- carries out the delivery to the buyer of the online store;
transfers funds to the account of the online store, constituting the difference between the wholesale “Supplier of happiness” and the retail price of the online store
MegaOpt24 dropshipping review
MegaOpt24 operates on a dropshipping system, offering resellers for sale a wide range of watches, accessories, gadgets, toys, electronics, glasses, and other goods demanded by a wide audience.
To get a price list with current prices, just fill out the feedback form.
Working scheme with MegaOpt24:
- you give the supplier a finished, verified order that has already been paid for by the buyer of your online store;
- make payment for the order;
- the order is formed by the supplier and sent to the specified address to the client on your behalf.
The supplier offers partners with the following conditions:
- the ability to arrange delivery from one order;
- fixed commission for the direct delivery program;
- the order is dispatched on the day of application, within 12 hours from the date of registration.
CITYTRADE dropshipping review
CITYTRADE is a manufacturer of home textiles and bed linen, offering a wide range of products at wholesale prices.
Mutually beneficial partnerships of entrepreneurs with the textile company Citytrade are possible in the format of dropshipping, for this the company has a special offer:
- providing all information about products in electronic form (price list, photo catalog, information description, certificates, etc.);
- constant updating of the assortment of the online catalog;
- regularly updated grids for the availability and balances of goods in the company’s warehouse;
- the ability to communicate with the manager of the manufacturer at any time via E-MAIL, telephone, or what’s up to the application.
For online stores “CityTrade” offers the following advantages:
- the ability to form order from one unit of goods;
- delivery to 365 settlements;
- shipment of goods on the day of ordering.
Moscow House of Furniture dropshipping review
The supplier “Moscow House of Furniture” offers furniture products from 150 Russian furniture factories, delivery of products is carried out in all regions of Russia.
The supplier presents a special offer for the owners of online stores – cooperation under the dropshipping scheme, which provides for the promotion of furniture products by the creator of the online store, and preparation and delivery of the order by the supplier. However, the representative is not ready to provide information about goods in YML format, as well as to cooperate with portals with visits of less than 1000 users per day.
The advantages of working with Moscow Furniture House are the following factors:
- a huge assortment providing ample marketing opportunities;
- own logistics service, as well as lifting and assembly services for the end-user;
- resolving complaints after the sale of goods;
- complete replacement of defective items or re-grading or refund for defective items.
More than 100 furniture factories are available for dropshipping. The commission for the order varies from 9 to 19% depending on the product. All product data is provided in XML format and can be downloaded automatically by the partner.
Kupistol dropshipping review
Furniture delivery and all after-sales services are provided by the Kupistol online store. The partner receives remuneration only for completed orders. The transfer of remuneration is carried out at the end of the reporting period.
A few facts about Kupistol:
- The company has been operating since 2008;
- More than 200 orders are delivered daily;
- High level of service – 5 stars on Yandex.Market;
- Over 200,000 orders delivered;
- Delivery and assembly of furniture is made in 1 day;
- Own service department in Moscow, St. Petersburg, and Nizhny Novgorod.