Dropshipping (direct delivery) is a method of selling goods via the Internet, in which delivery is carried out by the seller’s supplier. The usual scheme: a retail store buys or takes the supplier’s products for sale, brings them to the warehouse, then sells them and delivers the goods to the buyer on its own. Direct delivery: the stage of purchasing a wholesale batch and delivery to an intermediate warehouse is excluded from the scheme. The store sells and transfers money to the supplier, who makes the delivery. Products reach the consumer directly from the largest dropshipping supplier, bypassing the retail warehouses of intermediaries.
Everyone wins:
- The supplier increases the volume of products sold without the cost of finding new customers.
- It is very convenient for the store - it does not risk the money that it would spend on a wholesale batch, and does not have to maintain a warehouse.
- The consumer receives the goods at a lower price, from which the markup for the retail warehouse and courier work is excluded.
Important! By reducing freight transportation, products are less damaged. This is important when trading fragile items - dishes, appliances, toys.
Best Online Electronics Suppliers
MEGA-M
www.mega-mania.ru
The Russian Internet service "MEGA-M" offers a large selection of smartphones, tablets, accessories, auto electronics from the USA, China, Korea and Japan at the cheapest prices. The assortment is updated daily. Gadgets are sent to the consumer on the day of purchase. The store delivers goods to any corner of Russia. Dropshipping cooperation involves paying the seller a percentage after each transaction or once a month.
DX
www.dx.com
A giant Chinese hypermarket with a focus on gadgets, presented in 12 languages, including Russian. It also sells clothing, sports and leisure items, cosmetics, etc. Dropshipping proposal: the retailer sets prices in the online store, DX sends the product to the buyer without its logo or any other identifying marks, shipping is included in the price. There is an option for single orders - it is no different from a regular purchase on DX. For wholesale orders, you need to download the catalog, connect it to your store, and create a delivery request in an Excel file.
The largest suppliers of clothing, shoes and accessories
MMDROP
The company is a supplier of branded shoes for online stores: Converse All Star, New Balance, Adidas, Nike, Reebok, Vans, Puma, Timberland, etc. It operates using a dropshipping system. Main advantages: minimum order from 1 pair, there is an upload of goods from the site (in excel, csv, VK-OK groups), there is a price list with the current availability of goods (updated once an hour), excellent photos of goods, fast technical support Whatsapp/Viber, fast delivery of goods.
The company has been in the e-commerce market for 15 years; since 2014, it has been actively developing dropshipping. Currently, more than 800 online stores work with the Dropshipping Happiness Supplier.
Regardless of the number of goods in the order, the cost of the dropshipping service is 150 rubles per order.
- accepts payment from customers for the order and transfers it to the online store;
- own courier service in Moscow;
- a large selection of delivery methods in Russia (Russian Post, PickPoint, DPD, SDEK);
- accepts back goods not purchased by customers;
- complete financial statements in your Personal Account.
- you need to register an individual entrepreneur or LLC;
DROPO
Dropo.ru is an aggregator for online stores with 35,000 positions:
- The platform offers the cheapest prices for various categories of goods from different suppliers due to high turnover;
- The partner can export to popular CSV and XML formats for automatic uploading to the online store;
- The seller trades at his own price;
- The order is submitted through your personal account on the Dropo website;
- The aggregator completes the order (including prefabricated orders) and delivers it to the client;
- The client pays for the order upon delivery;
- Dropo pays the online store the difference between the wholesale and retail prices;
- Cooperation is fixed in the contract, payments are received to the seller’s bank account.
Important! The Dropo platform provides additional services: creating an online store and filling out product cards.
Light in the box
Lightinthebox.com is an international company with offices in China and the USA. The main products sold are clothing, electronic gadgets and accessories, items for the home and garden, as well as custom-made evening and wedding dresses.
Operating procedure:
- The seller is registered in the direct sales section of the largest dropshipping supplier.
- Places an order on the website, indicates the client’s address, and makes payment.
- LightInTheBox delivers the order without indicating its contact information and the price at which the seller received the product.
- The site provides, at the request of the seller, photographs of products and detailed information about them.
- The seller can become a member of the VIP program and receive a better offer.
- The LightInTheBox website allows you to track orders.
If you are considering options for developing an online business, you should also know about dropshipping - a business model that requires a very small initial investment to organize the delivery of goods to customers. In this article we will answer the questions: where to find suppliers for an online store for dropshipping, which of them offers the best conditions, and what types of work schemes there are.
What you will learn about:What is dropshipping
Dropshipping is a direct-to-consumer shipping service offered by some suppliers (but not all). Its essence: an online store does not need to worry about inventory in the warehouse. When the store receives an order, it contacts the supplier, who sends the goods to the customer instead of the online store.This means that by using dropshipping, an online marketplace can sell a variety of products without having any stock or inventory. This makes the service attractive to micro-businesses.
For online sellers, working with such a supplier is easy. A wholesaler offering dropshipping will provide photographs of the items they intend to sell.
Next, the online store posts the images on its website or social network page. When a customer purchases a product, a store representative places an order with the wholesaler, who then ships it to the customer.
Scheme of work:
- The buyer places an order in the online store. For example, a smartphone for 10 thousand rubles.
- The online store transfers consumer data to the dropshipping supplier, paying for the shipment of goods at a wholesale price. For example, he gives 8 thousand rubles.
- The supplier sends the box with the smartphone to the client via delivery service. The buyer receives a smartphone. The online store records a profit of 2 thousand rubles.
Important! Not all wholesalers offer dropshipping. On the contrary, it is difficult to find real certified wholesalers who are interested in direct deliveries.
Advantages and disadvantages of dropshipping
Trading through the dropshipping system requires minimal investment. This is why entrepreneurs who want to start small are so attracted to dropshipping.
To automate the work of your online store and increase sales, try the Business.Ru system. Send orders to suppliers, accept and pay invoices directly from the service. Monitor sales results in real time and control revenue and all expenses in one report.
Advantages:
1. Almost no capital investment. There is no upfront investment. The store representative purchases items if he receives payment from the buyer.
You can open an online dropshipping store with suppliers from your own home office. The owner of the outlet does not see the goods and is not involved in packaging and delivery. Therefore, there is a significant saving in the amount that would be spent on storing goods and managing the entire supply chain.
2. To develop a business, an entrepreneur or organization does not need to expand the warehouse to store goods and additional employees.
3. Low risks. A retail outlet with dropshipping suppliers is not in danger of a situation where some item is left behind and is not sold. Money is only invested in creating your own website and marketing to get traffic.
4. Wide choice. Using, for example, five wholesalers with direct deliveries at once, you can create a large-scale catalog for an online store. You don't have to worry about analyzing your sales history to limit your site to best sellers. The store can publish any product lines, even those that are not in high demand.
5. Possibility of expansion. Dropshipping businesses are highly scalable depending on traffic growth, marketing effectiveness, and conversion rates.
Important! Regardless of what other sellers say, dropshipping is not a get-rich-quick scheme.Disadvantages of Dropshipping
Sure, it seems like an easy scheme to sell the goods of other organizations for a percentage. However, when all the disadvantages of this “simple” business are taken into account, it turns out that this is not an easy matter.
You can only quickly open an online dropshipping store with suppliers, but not get a decent profit. Let's figure out why:
1. Low profitability. You invest less money, you get less money. This means doing more business to stay afloat, let alone turn a profit. After all, most of the money from the sale of goods goes to the supplier.
The store receives a tiny percentage, which is often not enough to cover the costs of marketing, advertising, maintaining the website and covering your working hours as an entrepreneur.
Most likely, the discount on purchases from manufacturers and wholesalers will be less than 20%. For most products, you will have to cut your margins to maintain competitive prices and increase the number of repeat customers.
In addition, the profit of an online store is largely determined by traffic, so if a store brand is built from scratch, you can struggle for a long time to create a customer base. It makes much more sense to approach dropshipping when you already have a regular source of traffic;
2. High competition. Do you know that every month more than 500 people search in Yandex for how to buy a “ready-made online store with a dropshipping system”? Suppliers do their part by constantly advertising their services. There are always overly optimistic businessmen who are lured by low overhead costs;
Important! A low barrier to entry means more competition, with the most popular markets (electronics, clothing, baby products) suffering more. If an online store doesn't have an exclusive deal with a supplier, competing sites may sell the same products at lower prices.3. Lack of control over the supply chain. A traditional online store, when customers complain about the quality of items, the return policy, or slow delivery, can solve the problems on its own. However, in dropshipping, everything depends on the supplier of the product. And the online store is responsible for customer service.
A communication problem can also be fatal: when the supplier does not respond as quickly as the client wants. In e-commerce, customer service is of utmost importance. Even the slightest disruption, such as a delayed response, sends consumers into the hands of competitors. Bad reviews early on will kill a business before it gets off the ground;
4. Issues of legal liability. This isn't the biggest issue, but it's worth mentioning. Some suppliers of goods for dropshipping online stores operate illegally, without registering their activities or using gray tax evasion schemes. It happens that they use trademarks without the permission of the copyright holder. An online store that sells such a product automatically becomes an accomplice to the crime.
The problem can be resolved with the help of a well-thought-out agreement with the supplier. However, its development and signing requires additional investments (for legal support). An entrepreneur who is attracted by low start-up costs usually does not have the money to do so;
5. It is difficult to increase the average check and then retain the client. Usually, to achieve this, marketers offer to sell additional products (this does not always work out - this supplier may not have them, and sending an order in two boxes is at least strange).
Branding would help retain customers. But it will not be possible to fix the name of the online store in the user’s mind: it is not your logo that will appear on the box with the product.
There are also other disadvantages (these are special cases, no one is immune from them):
- the supplier's warehouse will run out of goods, and you will find out about this only after the buyer orders;
- the goods will be lost upon delivery, and communication with the dissatisfied customer will be the responsibility of the store owner;
- The supplier can include advertising of his own online store (discount on purchase), etc. in the order.
Dropshipping cooperation schemes
Above, a general outline of the dropshipping cooperation scheme was presented. If we compare the nuances, there are two schemes of work on the Russian market. They differ in payment for goods.Scheme 1:
- A store visitor orders a product and pays for it (or makes an advance payment);
- Order information is transmitted to the supplier;
- The online store pays the dropshipper the cost of purchase and delivery (or additional fees, if any);
- The wholesaler or manufacturer sends the goods to the buyer to the address specified by him.
- The client orders a product, but does not pay for it (chooses payment upon receipt);
- Customer information is transferred to the supplier;
- The dropshipper sends the goods to the specified address;
- The client receives the goods and pays for it;
- The wholesaler deducts the price of the goods and delivery from the funds received, and transfers the remaining amount to the account of the online store. Sometimes an additional commission may be charged.
When working according to the second scheme, a cash gap is possible if the dropshipper is late with payment.
|
Number of departure |
Description |
Client name |
Address |
departure date |
Status |
Prepayment |
Full price |
|
|
www... |
12345678 |
Dress art. 123 |
Ivanova A.V. |
Moscow, Leninsky Prospekt, 123, apt. 123 |
23.08.18 |
Delivered |
500 rub. |
1200 rub. |
How to find a supplier for an online dropshipping store
You should not hope that once you find one or two suppliers, you will be able to work calmly. Online store owners involved in business development are constantly looking for new opportunities and new suppliers. For this, different options are used.
1. Search engines. It is logical to assume that in Russia, dropshipping suppliers for online stores have their own websites, which are known to Yandex and Google. However, in practice it turns out that the sites in the first places of search results are companies that offer insufficiently high-quality goods and for a lot of money. They spend a lot of money on SEO optimization, and they need to “recoup” the costs.
To search through Yandex and Google, it is advisable to be patient. Enter a more specific query indicating the niche (for example, “dropshipping suppliers of children's clothing for an online store”), and then look through about 20 pages of search results. By following the links, you will be able to compare the assortment, evaluate the market, and begin to understand wholesale prices and conditions;
2. Special catalogs. The advantages of choosing a wholesaler for direct deliveries through a catalog are in a large number of offers. Popular catalogs (postavshhiki.ru, potlist.ru, yopt.ru and others) are filled with advertisements for dropshippers.
This search has a disadvantage. You will have to study more than a hundred proposals to determine the five that are more or less suitable;
Important! When collaborating with a foreign manufacturer, it is necessary to have communication skills in English (you can use an online translator, but sometimes it does not translate colloquial and abbreviated words). There are other difficulties of working with a foreign supplier: long delivery times and unstable quality of items.3. Joint procurement sites. On specialized forums you can also find information about a dropshipping supplier for an online store;
4. Exhibitions. Manufacturers come to exhibitions and fairs who practically do not engage in promotion on the Internet. The advantages of going to exhibitions are that you can immediately see the product and agree on working conditions in person. Disadvantages include the cost of paying for entrance to the exhibition, as well as travel to the event, accommodation, etc.
Hello, dear friends!
How many of you consider online trading a feasible activity for yourself? And in general, does he think that running an online store is easy? There are no such?
And who is sure that for this type of activity it is necessary to organize a warehouse, order and deliver goods, and solve problems with unsold balances? I think that the majority are like that.
Well, I must disappoint conservatives in a good way: the modern model of online trading makes it possible to greatly simplify the tasks of a businessman and not bother himself with unnecessary actions. If you know what dropshipping is in sales, then you understand what I’m talking about now, but if you don’t understand, then read on.
1. Dropshipping - Introduction
The dropshipping system originated on Burzhnet websites (they were the first to launch online stores, so the idea did not appear out of nowhere). On English-language resources you can find a huge number of intermediary resources. They have high-quality websites, excellent product photos, and a developed loyalty program. But the owners of these sites do not have the goods as such. But there are a lot of profitable offers for the buyer. And all because dropshippers know how to hurry up in time and conclude an agreement with one or more suppliers or manufacturers of goods.
The terms of the agreement (to summarize) are as follows:
- The dropshipper undertakes to find a sufficient number of buyers for the manufacturer (supplier);
- The supplier (manufacturer) undertakes to provide the customer with quality goods in the required quantity on time;
- As a result of a successful transaction, the dropshipper receives a reward in the form of commissions (margin);
- The difference between the price from the supplier and the price posted on its website is determined by the dropshipper independently, focusing on consumer demand and the average market price.
But not a single expert will argue that trading without having goods in stock is completely easy.
2. What is needed to work under the dropshipping scheme
Without a website or other similar platform, sales are impossible. You need to make a “showcase”: a multi-page online store or a one-page store.
A one-page website is suitable for one unique product, a store for selling a large assortment. Another option, if there are several products, is to make several landing pages. Each one is for a specific type of product.
It is better to buy goods for one-page websites (dropshipping) not from any large suppliers, but rather turn to CPA networks. For example:
- ad1.ru
- cityads.ru
- admitad.ru
Without a reliable supplier, the idea of dropshipping becomes meaningless. Where to find a supplier is a very important question, the solution of which determines the successful start and further development of the business.
It is important that the supplier is responsible, makes contact, and shows loyalty to the dropshipper as a promising intermediary. By choosing a partner based on these criteria, you can ensure decent income for yourself, a quality product for customers, and the required number of regular customers for the supplier. Your discernment will benefit everyone involved in the scheme.
3. How much can you earn from dropshipping?
The commission for intermediaries ranges from 1 to 1000 percent, depending on how much talent the dropshipper has to sell the product at a high price.
I have to somewhat disappoint those who have not yet fully understood what dropshipping is in sales. Dropshipping suppliers usually work with more than just one store, which means that the same product can be sold to dozens or even hundreds of people. This suggests that dropshipping has its own price ceiling - and it’s worth sticking to it. You shouldn’t mark up too much, otherwise customers will run to competitors.
Competitors in dropshipping can only be defeated by lowering the price. Even with a 10% margin, you can earn more than 100% if you activate customer acquisition and increase the number of sales.
For example, you find a wholesale supplier who sells goods for 100 rubles apiece and agree that you will bring him ten real buyers a day who will order the goods at retail, but at a wholesale price. And at the same time, you set a low margin percentage (10-15%) - the product on your website costs 115 rubles.
Your competitor also finds this supplier, but does not talk about anything like that with him: as many buyers as there will be, so many will be. And he sets his margin - 50% (price on the website - 150 rubles per unit). In this case, of course, you will get more clients. People are always looking for the cheapest product, so you can be sure that even with the lowest interest rate you will not be left without money.
4. Where can I find a reliable supplier of goods?
Companies from China and Europe offer work on favorable terms for the dropshipper. And if you set yourself the goal of finding a conscientious partner, you need to contact them directly. The option is not very workable, since not every distributor will agree to direct deliveries due to your lack of necessary recommendations and feedback on your work. Companies, especially Western European ones, value their reputation very much and will not contact an unfamiliar and inexperienced intermediary. They fear fraud and unscrupulous partnerships like fire.
5. How to find a dropshipping supplier for an online store in Russia
Usually, owners of online markets in our country use the services of wholesalers from China. If you also look to the east with hope, then look carefully. Many people have already tested Chinese “quality” for themselves, so they don’t really trust a beautiful picture. Find partners who are ready to guarantee the quality of the product, sign an agreement where quality is included in a separate clause. If possible, do not cooperate with clothing suppliers - this type of product from Chinese manufacturers is recognized as the lowest quality. If you wish, you can find a partner who will provide buyers with more or less decent dresses. But there are only a few of these in China.
There are other negative aspects of dropshipping with Chinese suppliers:
- long delivery period - from three weeks to one and a half months;
- payment method – prepayment, without the possibility of paying in cash upon receipt;
- a limited number of postal and courier services that deliver from China.
If all of the above doesn’t scare you, I advise you to start looking for suppliers on Aliexpress or Taobao.
5.1. Dropshipping suppliers in Russia
It is impossible to interest a competent buyer with the influx of low-quality Chinese goods. Apparently, this is why many domestic dropshippers have begun to explore the American Amazon. Still would! There you can find up to 6,000,000 potential clients! In a day!
Despite the fierce competition from foreign suppliers, I am simply confident that we have conscientious manufacturers who are ready to cooperate. And they are no worse, but much better than foreign ones.
Let’s say you’re a resident of the capital and you’ve decided to try dropshipping. Suppliers in Moscow interest you more than others. Don’t be so quick to be disappointed if you don’t find any in the capital. On the periphery, people also know how to work, create high-quality goods, and they are many times more conscientious.
To avoid scrolling through dozens of pages in the search, I advise you to pay attention to the catalogs of Russian manufacturers and suppliers for working on the dropshipping system:
- postavshhiki.ru;
- dropshopping.ru;
- aplix.ru;
- ulmart.ru;
- russia-dropshipping.ru;
- optlist.ru;
- suppliers.rf;
- za-optom.com (this catalog includes dropshipping suppliers from Ukraine, and China is also here, where can you get away from it?);
- optomtovar.ru.
But if you want to limit the geography of delivery, you can easily find in the catalogs a dropshipping supplier for an online store in Moscow from the capital or the Moscow region.
Dropshipping- this is a way of working without your own warehouse, when the goods are directly sent from the supplier to the buyer.
This partnership system is very developed in Europe. And it's really very convenient!
You will not be required to make any investments. You can start your business right now, without leaving your computer.
All you need is a platform on the Internet to post products and attract customers. This can be either an online store website or a page on a social network.
Dropshipping is a very profitable system of cooperation!
Example: Do you want to sell swimsuits? An excellent product that is always in demand and has high margins.
But there is one thing! One swimsuit model is presented in 8 sizes x 50 models (after all, your customers need an assortment in order to choose a model to their taste) x 2000 rubles (approximate wholesale price). Total: you need 800,000 rubles for the initial purchase of swimsuits for your store.
With home clothes it’s a little easier, but you still need a decent amount of money to purchase.
Example: 5 sizes * 1800 rubles (approximate wholesale price) * 50 = 450,000 rubles.
Also keep in mind that the warehouse needs to be replenished periodically by purchasing missing sizes. And this, again, is a large expense.
When working using the dropshipping system, it is not necessary to have a multi-million dollar warehouse with goods. All you need is to have an online store, an online storefront or a group on a social network with products where your customers will place orders. Our company will send orders to your customers, and you will receive your difference between the wholesale and retail prices.
You buy only the product that your customer needs. Agree, this is very convenient!
How to work using the Dropshipping system?
There are several options for working with the dropshipping system. The most popular ones are with prepayment and without prepayment.
Dropshipping with prepayment:
- Send this order and payment to us.
- The buyer receives the order and sends payment directly to you.
Dropshipping without prepayment:
- You receive an order from a buyer.
- You send this order to us without paying for it.
- We send the goods directly to your buyer (we send you a tracking number).
- The buyer receives the order and sends payment to us.
- You receive your reward.
Any of the options includes:
- Sending the goods directly to your customer
- Free product packaging
- Possibility to use your promotional materials
What is needed to work according to this scheme:
- Agreement with us
- A valid account on the wholesale website (www.site)
As you can see, everything is quite simple. To get started, register on our website to see basic wholesale prices.