Scribd
Upload
37 views18 pages

Ecommerce

Dropshipping is an e-commerce model where a store sells products without holding inventory. When a customer places an order, the store purchases the item from a third-party supplier who then ships the product directly to the customer. Setting up a dropshipping business involves finding reliable suppliers, selecting profitable products, creating an online storefront, and acquiring customers through marketing. While it has a low startup cost and allows for flexibility, dropshipping also faces challenges such as low profit margins, reliance on suppliers, and limited control over shipping.

Uploaded by

Malaika Khan 009
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
37 views18 pages

Ecommerce

Dropshipping is an e-commerce model where a store sells products without holding inventory. When a customer places an order, the store purchases the item from a third-party supplier who then ships the product directly to the customer. Setting up a dropshipping business involves finding reliable suppliers, selecting profitable products, creating an online storefront, and acquiring customers through marketing. While it has a low startup cost and allows for flexibility, dropshipping also faces challenges such as low profit margins, reliance on suppliers, and limited control over shipping.

Uploaded by

Malaika Khan 009
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

1

DROPSHIPPING
2
GROUP MEMBERS:

Malaika Khan SP-2020-BBA-009

Mehreen Ijaz SP-2020-BBA-


016
Hira Waseem SP-2020-BBA-
023
3
DROP SHIPPING:

Drop shipping is an e-commerce model where a store sells products


without holding inventory. When a customer orders, the store buys
the item from a third-party supplier that ships it directly to the buyer.

4
DROP
SHIPPING
PROCESS:

5
POPULAR PLATFORM OF DROP SHIPPING:

6
CHALLENGES OF DROP SHIPPING:

Inventory
Increased
management and
competition
stockouts

Reliance on suppliers
Customer service and
and fulfillment
returns
partners

7
FINDING RELIABLE SUPPLIER:

Researching and vetting potential suppliers

Evaluating product quality and reliability

Negotiating favorable terms and pricing

8
SELECTING PROFITABLE PRODUCTS:

 Identifying profitable niches and trending products.


 Conducting market research and competitor analysis.
 Considering product demand, pricing, and margins.

9
SETTTING UP AN ECOMMERCE
STORE:

 Choosing a platform (e.g., Shopify, WooCommerce)


 Designing an attractive and user-friendly website
 Optimizing product listings and descriptions

10
MARETING AND CUSTOMER
ACQUISITION:

 Creating a digital marketing strategy


 Utilizing social media advertising
 Search engine optimization (SEO) techniques
 Influencer partnerships and collaborations

11
ORDER FULFILLMENT AND SHIPPING:

 Automating order processing and tracking


 Managing inventory and stock levels
 Choosing shipping carriers and optimizing shipping costs

12
CUSTOMER SERVICE AND RETURN:

 Providing timely and efficient customer support


 Handling returns and exchanges
 Maintaining customer satisfaction and loyalty

13
FINANCIAL MANAGEMENT AND
PROFITABILITY:

Tracking expenses and revenue


Pricing strategies and profit margins
Managing cash flow and expenses

14
Low startup cost:

• Traditional eCommerce stores often require


significant investments in stock, employees and
shipping infrastructure.

No inventory management:
ADVANTAGES
• Your supplier will handle product creation and
OF inventory management, including shipping and
handling.
DROP SHIPPING: Wide product selection:

• You can experiment with multiple niches and trends


without financial risk.

Flexibility and scalability:

• You can easily expand or pivot your product offerings


based on customer preferences or market trends.
15
DISADVANTAGES:
Low profit margins:

• When you start with cold ads, the algorithm needs time to target the right audience, which can be
challenging and expensive.

Inventory and supplier issues:

• Dropshipping businesses rely on suppliers, which introduces variables you can’t control.

Limited control over shipping:

• When sourcing products from China. Shipping by freight can be expensive, so you’ll likely use sea
shipping, which typically takes 14+ days.

Customer service challenges:

• Long wait times, damaged or incorrect products and other unforeseen issues can lead to unhappy customers.
16
TIPS FOR SUCCESSFUL DROPSHIPPING:

Choose the right products

Select a platform with reliable, fast hosting

Find dependable suppliers

Create an appealing online store

Craft effective marketing strategies

17
18

You might also like