No business model is kind of perfect. The best model is usually depending on the goals of the company, your resources and ofcourse your niche.
As this is often true, there are actually some business models out there that come pretty close to being perfect. And in all probability the best example of this all is dropshipping.
Why is dropshipping so special? Let’s find out.
The Problem With Affiliate Marketing.
Selling affiliate products is the route that most web marketers will take when trying to make money from a blog, a social media channel or mailing list. The plan is straightforward, they promote someone else’s product and then they get a profit.
The downside is that these products are mostly digital products instead of physical products. In order to get the biggest cash, physical products is what you wish to sell.
While this has huge benefits for the manufacturer, it has some significant downsides for you. For starters, the appeal of a digital product is much smaller than that of a physical product. Try and sell a digital product to your grandma as an example and you will not probably have a lot of luck. The same goes for attempting to sell digital products to your mum or your dad and most likely even to your friends!
The other big issue with digital merchandise is that you are sending customers away from your website. They’ll be more likely to remember the company name that sold them the product versus the blog that sent them there! And this prevents them from buying for multiple items through you.
The Problem With Selling Your Own Products or Reselling
So you may sell your own product, positive. But then you have to manufacture it, spending thousands of dollars and potentially wasting your money if the product is not a success. Many people do not have the cash or the knowhow to go this route.
So you’ll resell instead….but this way you’ll continue to take a big risk by spending lots of money on inventory. Then you’ve got to find a method to store all the products and then you have to deliver it and worry whether it arrives on time or not. It’s a large amount of admin and not a lot of fun.
Enter The World Of Dropshipping
What you are doing with dropshipping is selling a product through your own store as if it were your own item and then letting the wholesaler worry concerning fulfilment and delivery – as if it were an affiliate product.
This has all the advantages of selling an affiliate product because you’ll be able to sit back and let the orders roll in without having to do anything. But it additionally has all the advantages of selling a true product as a reseller or manufacturer – you’re able to keep your customers on your website and improve your brand awareness, while also selling real, useful products.
Best of all, some companies will even offer ‘white label‘ dropshipping services. This means that you can really print your logo on the product and claim it as your own to brand your name.
Popular dropshipping companies are:
– Shopify – start your own store. Find and add products directly into your Shopify store.
– Oberlo – start using Oberlo today, you’ll have access to the forever free Starter Plan.
Find out more about related products:
Dropshipping – videocourse.
Shopify Secrets – video training.
Dropshipping – ebook.