DSers

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Kenyatta University *

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Nov 24, 2024

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What Is Dropshipping? Dropshipping is a business model in which an online store owner does not keep any inventory of products, but instead relies on a third-party supplier to fulfill customer orders. When a customer places an order on the online store, the store owner passes the order information to the supplier, who then ships the products directly to the customer. The store owner does not handle the products, and does not need to hold any inventory. The process of dropshipping typically works as follows: 1. The store owner sets up an online store, either on their own website or on a platform like Shopify, and selects products to sell from a supplier's catalog. 2. The store owner markets and promotes the products on their online store, social media, or other channels, and attracts customers to make purchases. 3. When a customer places an order on the online store, the store owner forwards the order information, including the customer's shipping address, to the supplier. 4. The supplier packages and ships the products directly to the customer, with the store owner's branding and packaging materials if desired. 5. The customer receives the products, and the store owner makes a profit from the difference between the price the customer paid and the cost of the products from the supplier, minus any fees or expenses. There are several advantages to using a dropshipping business model, including: 1. Easy to start: Dropshipping does not require a large upfront investment in inventory, making it relatively easy and affordable to start an online store.

2. Easy to manage: Since the store owner does not handle the products or manage inventory, the day-to-day operations of a dropshipping business can be managed with a laptop and internet connection, providing flexibility and freedom to work from anywhere. 3. Low entry cost: Compared to traditional retail business models that require a physical store and inventory, dropshipping typically has lower startup costs. 4. Large variety of products: Dropshipping allows store owners to sell a wide range of products without needing to purchase and hold inventory, giving them flexibility in product selection and the ability to respond to changing market trends. However, there are also some disadvantages to dropshipping, including: 1. Slim profit margins: Due to the costs associated with shipping, advertising, and other expenses, the profit margins in dropshipping can be lower compared to other business models. 2. Dependence on suppliers: Since the store owner relies on third-party suppliers to fulfill orders, they may have limited control over product quality, shipping times, and other aspects of the customer experience. 3. Increased competition: Dropshipping has become a popular business model, which means that there may be increased competition among online stores selling similar products. Generally, dropshipping is a business model that allows online store owners to sell products without holding inventory, but it has its pros and cons. It can be an attractive option for those looking to start an online business with low startup costs and flexibility, but it also requires careful management of margins, suppliers, and competition to be successful. How Can You Start a Dropshipping Store with DSers?

The article discusses how to start a dropshipping store with DSers, a top-rated dropshipping solution on the Shopify app store. It highlights the benefits of dropshipping, such as low initial investment and the ability to start with as little as $500. The article provides a step-by-step guide on starting a dropshipping business with DSers, including finding a concept for your online business, conducting product research on platforms like Amazon and AliExpress, selecting reliable sellers, creating a user-friendly website using platforms like Shopify, and managing the supply chain with DSers dropshipping tool integrated into Shopify. Importing products from find suppliers’ page Hover on the product you want to import and click on the import product option that appears. I have products but no orders Best 15 Evergreen Products to Dropship in 2023 The article discusses the best 15 evergreen products to dropship in 2023. It mentions that online sellers should look for unique and trending products to boost their sales. The list includes electronic gadgets such as drones and tablets, wireless phone chargers, phone lenses for smartphones, luggage and travel accessories, fitness and sports equipment, pet care products, watches and jewelry, and car accessories, among others. The article emphasizes the high market demand and potential for profit in these product categories, and suggests being creative and narrowing down options to stand out in a competitive market. Top 10 Trending Dropshipping Products for 2023 Introduction: Considering starting an eCommerce business? Dropshipping is among the most popular business models. But how do you find trending dropshipping products? In this report, we

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will go through the basics of dropshipping, explain how to identify popular dropshipping items, and provide you with a list of the top 10 trending dropshipping products for 2023. How to Find Trending Dropshipping Products: Having a defined procedure makes it easier to locate popular dropshipping items. You can follow the three steps outlined below. Step 1: Check Trends - DSers: Start by focusing on trending items. These products put you on the right track and guarantee that you sell a sought-after product. Selling trending products is the lifeblood of dropshipping. However, be cautious of products becoming too popular that powerful companies take over, as they may want to buy in bulk, making them unsuitable for dropshipping due to increased competition. Step 2: Concentrate on Top-Selling Products: Once you have a list of trending items, check how well they sell. A product may be popular on social media, but that doesn't always imply it's suitable for you. Check the top-selling items using data from various sources to ensure you discover products with sales and profit potential. Step 3: Assess Demand & Competition: Make sure your products are feasible by examining the market's demand and competition. Dropshipping has a low entry barrier, which means there may be fierce competition. Choose the right products to avoid unnecessary competition. Dropshipping Products to Avoid: Not all products may be suitable for dropshipping stores. Some examples of products to avoid include dangerous products, fragile products, products with copyrighted images, extremely heavy products, products with moving components or electronics, and certain apparel styles that are likely to result in returns. Top 10 Trending Dropshipping Products for 2023

Here is a list of the top 10 trending dropshipping products and markets that may be most lucrative in 2023: 1. Beauty Care Products: With the beauty industry expected to be worth over $716 billion in the US by 2025, beauty care products such as essential oils for hair, hyaluronic acid face serum, and makeup brushes are popular choices for dropshipping. 2. Pet Supplies: The pet industry in the USA saw record-breaking revenues of $123.6 billion in 2021, and the trend is expected to continue in 2023. Pet supplies, including products for dogs, are popular for eCommerce due to the ease of buying online. 3. Basic Fixing Tools: Customers, particularly young ones, like to be as self-sufficient as possible. Basic fixing tools such as screwdrivers, wrenches, and drill bits are in high demand for DIY enthusiasts and homeowners. 4. Fitness Equipment: With the increasing focus on health and fitness, fitness equipment such as resistance bands, yoga mats, and home gym equipment are popular choices for dropshipping. 5. Sustainable Products: As environmental concerns grow, there is a demand for sustainable products such as reusable water bottles, eco-friendly cleaning products, and biodegradable kitchenware. 6. Home Organization Products: With more people spending time at home, home organization products such as storage containers, closet organizers, and drawer dividers are in high demand for keeping homes tidy and organized. 7. Smart Home Devices: The smart home market is growing rapidly, and smart home devices such as smart speakers, smart lights, and smart thermostats are popular choices for dropshipping.

8. Travel Accessories: As travel restrictions ease, there is an increasing demand for travel accessories such as luggage, travel pillows, and travel-sized toiletries. How to Set a Proper and Lucrative Dropshipping Profit Margin Create a proper and lucrative dropshipping profit margin. Here are some fundamental principles to keep in mind: 1. Know Your Costs: In order to set a profitable dropshipping profit margin, you need to have a clear understanding of your costs. This includes not only the cost of goods sold (COGS), but also operational expenses, one-time payments, marketing investments, and debt and taxes payments. Make sure to calculate all these costs accurately to get a realistic view of your profit margin. 2. Use the Gross Margin Formula: The simplest way to calculate your profit margin is to use the gross margin formula, which is: (Revenue - COGS) / Revenue x 100. This will give you a percentage that represents your profit margin. Aim for a profit margin that is above the industry average of 12-15% to ensure profitability and business growth. 3. Price Your Products Strategically: Instead of applying the same pricing formula to all your products, consider pricing each product individually based on its unique characteristics and market demand. For cheaper products, you may be able to set a higher price and earn a higher profit margin, while for more expensive products, you may need to settle for a lower profit margin. Conduct market research and competitor analysis to determine the optimal price for each product that will maximize your profit margin. 4. Consider All Expenses: When setting your profit margin, make sure to consider all the expenses associated with your dropshipping business. This includes not only the cost of

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goods sold, but also transaction fees, shipping costs, account setup fees, and any other fees or charges that you may incur. Failing to account for all these expenses can result in a misleading profit margin that does not accurately reflect the profitability of your business. 5. Continuously Monitor and Adjust Your Profit Margin: Setting a profitable profit margin is not a one-time task, but an ongoing process. Continuously monitor your sales, expenses, and profit margin, and be prepared to adjust your prices and profit margin as needed to ensure profitability. Regularly review your pricing strategy, supplier costs, and other business factors that may impact your profit margin, and make adjustments accordingly. 6. Focus on Customer Value: While setting a profitable profit margin is important, it's equally crucial to focus on delivering value to your customers. Building customer trust and loyalty through excellent customer service, high-quality products, and timely delivery can result in repeat business and positive word-of-mouth marketing, which can ultimately lead to higher sales and profitability. Generally, setting a proper and lucrative dropshipping profit margin requires careful consideration of your costs, using the gross margin formula, pricing your products strategically, considering all expenses, continuously monitoring and adjusting your profit margin, and focusing on customer value. By following these fundamental principles, you can ensure that your dropshipping business is profitable and successful. Step-by-Step Guide to Deal with Your First Dropshipping Order: Manual Method - Deal with Your First Dropshipping Order: Step 1: Accept Your First Order

Once your customer has placed an order on your online store, the first thing you need to do is accept the order. This step marks the beginning of the dealing process. Step 2: Check Your Customer's Order After receiving the order, you need to check whether the order is correct or not. Make sure you have all the information, including the products ordered and the customer's details. Pay special attention to the shipping address, as it will affect the delivery time. If the products are delayed, the customer may complain. Step 3: Confirm the Order Before confirming the order, make sure everything is correct from the customer's side. Once you have confirmed the order and received payment, you can proceed to the next stage. Step 4: Place the Order on AliExpress Now, you need to find the exact product that your customer ordered on AliExpress. This can be a challenging process as you need to consider the shipment time and method. Look for a supplier who can ensure prompt delivery and supports the shipping method requested by your customer. When placing the order on AliExpress, you may need to contact your supplier to let them know you are dropshipping. This is important to ensure that your customer receives the product without any third-party information, such as logos, invoices, or brand names. Be cautious and spend the necessary time on this step. Step 5: Choose the Most Suitable Shipping Method Once you have placed the order on AliExpress, you and your supplier need to agree on a suitable shipping method and ship the product out. You do not need to ship the product yourself, but you still need to stay in touch with your supplier to ensure timely shipment and obtain the tracking number.

Step 6: Track the Order Status When you receive the tracking number, inform your customer via email that the package has been shipped. Keep in touch with your customer to share the order status from time to time. Building a connection with your customers is important as it shows your commitment to the transaction and can lead to more sales. Step 7: Handle the Post-sale Process Once your customer has received the product, ask for reviews and feedback. Since this is your first order, it's important to know what your customer thinks about the product and services. If the customer has any complaints, address the issues and offer compensation if needed. This can benefit you in the long term. Automatic Method - Deal with Your First Dropshipping Order through DSers: A more efficient way to handle your first dropshipping order is to use a dropshipping tool like DSers, which can automate the process and save you time and effort. With DSers, you can sync your orders from your online store, place orders in bulk to your suppliers on AliExpress, and push tracking information to your store after the order is shipped. All you need to do is click on the "Place order to AliExpress" button and make the payment. Dealing with your first dropshipping order can be challenging, but following these step-by-step guides, whether manually or through a dropshipping tool like DSers, can help ensure a smooth process and satisfied customers. Remember to communicate with your customers, handle any post-sale issues promptly, and strive for excellent customer service to build a strong foundation for your dropshipping business.

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