For small and medium-sized e-commerce companies, the supply chain is very important. Generally speaking, small and medium-sized e-commerce companies will purchase raw materials from suppliers to make products and sell them on e-commerce platforms, or directly purchase products and sell them on e-commerce platforms. The procurement link as the source of the supply chain is very important because this link is related to the sales performance of e-commerce companies. If the e-commerce company does a good job in procurement and keeps the price of the product within a low range, it will naturally be favored by buyers. In order to reduce costs and increase profits, e-commerce companies can start with procurement business and do a good job in supporting work such as market research, product selection, product evaluation and warehouse management.
Some small-scale e-commerce companies choose to do a drop shipping business because they do not have a source of goods advantage. This business can reduce the troubles of e-commerce companies, such as reducing the risk of stockpiling and financial pressure. However, the defects of the drop shipping business are also quite obvious, including unreliable suppliers, high source prices, slow delivery, poor packaging and bad buyer experience. In order to make up for these defects, e-commerce companies need to pay attention to the following matters.
Adhere to the principle of “one hand to take the goods, one hand to pay”.
(2) Check online whether the supplier has fraudulent behavior.
(3) Discuss matters such as returns and refunds.
(4) Be wary of suppliers promoting “useless” products, which may be inventory or unsalable items.
(5) Understand the buyer’s income before choosing a product.
(6) Do not easily believe the hot-selling products mentioned by suppliers. Be careful and cautious in your judgment.
(7) Continuously improve your vision in selecting products and accurately identify products that may become hot-selling products.
In addition, in the drop shipping business, the place of shipment, express delivery fees, return and exchange policies, domain name period, whether the supplier is registered, number of transactions, profit settlement and payment methods are also very important. E-commerce companies should pay special attention to these issues.
Tips
Even if you choose the drop shipping business, e-commerce companies should be particularly careful in selecting products and suppliers. In fact, the drop shipping business is essentially the same as purchasing by yourself. The goal is to save costs.