E-commerce remains a segment that is gaining more and more space among Brazilian consumers, reaching an expectation of growth of 20.9% in 2018 compared to the previous year, according to research. Thus, knowing solutions such as national dropshipping is essential for retailers who want to maintain relevance and profitability.
Below, we explain this concept better, for what situations it is indicated, pros and cons of the solution and we also list some of the main suppliers in the country. Stay with us!
What is national dropshipping?
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The concept of dropshipping refers to a modality of electronic commerce in which the retailer does not keep the stock of the products he sells, making him act as an intermediary in sales.
The model works like this: instead of buying the products and keeping them in own stock, sending as customers buy, in dropshipping, the shopkeeper requests the product from the supplier, after the consumer has already closed the purchase, and the merchandise is sent directly from the partner to the customer.
With this, e-commerce makes the sale, but it does not need to manage the steps of separation, packaging, dispatch and order tracking, facilitating the logistics management of the business, which becomes simpler.
This strategy, however, is not suitable for all types of business. For example, if you already have a large and consolidated store, it does not pay to adopt this solution. However, for small retailers who are still conquering the market, the ease of managing e-commerce in the dropshipping model makes the alternative an advantage.
Thus, this type of business has some advantages and disadvantages that must be considered when evaluating the moment of the store. We highlight the main ones below.
What are the advantages and disadvantages of this solution?
Before opting for one or the other business model, it is important that the shopkeeper considers all aspects of the alternative, ensuring a more accurate and profitable choice. In order to inform the main issues related to national dropshipping, we highlight below some of the pros and cons of the solution.
Benefits of dropshipping
The main advantage of this modality is that you can start a store without having to invest a large amount of capital in stock. Often, the infeasibility of having a business is due to the resources required to start the store. With dropshipping, however, there is no such demand, allowing you to start the store with less capital.
Another issue concerns logistical care. It is common for small shopkeepers to have to send the goods via the Post Office, which results in high freight, delays and dissatisfaction of the shopping experience for the customer. However, companies specializing in dropshipping rely on carriers, which improves the dispatch and delivery of the product.
With this modality, the storeowner is also able to reduce the operating costs of the business, managing to keep the store even with a lower working capital. With the savings generated, it is possible to invest in marketing and sales strategies to increase sales, aiming to expand and better structure the virtual store in the future.
Finally, one more advantage of this option is to reduce the risks for the shopkeeper. When dealing directly with a stock, there is always the danger of having goods stopped and, in the end, the business will take a significant loss. However, by not having to buy the products in advance, these problems are considerably less.
Disadvantages of dropshipping
Despite the facilities and savings provided by the solution, the shopkeeper must also consider negative aspects of the practice. One of the most worrying is the lower profit margin, especially in niches where there is greater competitiveness. Therefore, assess whether the segment enables this type of model and the pricing of products .
Inventory unavailability must also be assessed, which can cause serious problems for e-commerce. The customer can buy a product for a price and you cannot find the goods with the usual suppliers or even an item leaves the market completely and you are unable to meet the demands of the buyers.
Finally, the disadvantage of the solution is the complexity of transport. If the shopkeeper works with many suppliers, it may happen that a consumer buys goods from several of them, causing an increase in transport costs and separate deliveries. In this case, care must be taken in how this information will be passed on to the customer, preventing him from thinking that he is being cheated by the store.
By assessing the advantages and disadvantages of the solution, each tenant can determine whether it meets more or less the current business needs. As stated, this alternative is usually more beneficial for small entrepreneurs who do not yet have a consolidated store and have little working capital to invest.
What are the main suppliers in Brazil?
Dropshipping gained ground mainly with the international modality, with retailers importing products from China and the United States to resell. However, the benefits of the solution led to the emergence of some suppliers in Brazil to serve the domestic market of retailers who choose this business model. The main ones are:
- Empório Bags: company that works with women’s accessories in general, such as bags, wallets, belts, and others;
- Imagem Veneers: in the dropshipping market for gold and silver-plated costume jewelry;
- Cheap Wholesale: sells accessories in general, in addition to clothes and shoes;
- Mix Barato operates in the accessories, clothing, and tennis segments.
To start the partnership with any supplier, it is essential that the shopkeeper research the reliability of the company and the products, see what is the evaluation of the customers, try to contact other stores that work with these companies, etc.
When selecting the most relevant ones and contacting us, it is necessary to check if they really work with dropshipping, if they make advantageous prices for resale and the payment options available.
If, in e-commerce in general, the choice of suppliers is already decisive for the success of the business, in the case of dropshipping, this importance is even more significant, as the partner will act directly with the customers of the virtual store, being responsible not only for the quality of the products, but also for the experience of buying and delivering the products.
Now that you know what national dropshipping is and how it works, what are the advantages and difficulties of this solution and which suppliers operate in this market in Brazil, you can already define if this is the best sales strategy for your business.
After all, how to find reliable dropshipping suppliers?
One of the main challenges of an e-commerce is to develop a logistics system that works properly, either with its own or outsourced stock. A determining element in these models is to find reliable dropshipping suppliers for those who choose this modality.
Next, better understand what dropshipping is about and how your e-commerce can benefit from this strategy by choosing suppliers that are reliable!
What is dropshipping and how does it work?
Dropshipping is a type of logistics in the e-commerce or marketplace that allows the shopkeeper not to have his own stock, which simplifies the logistics area, especially among small and medium businesses.
The dropshipping works as follows: the customer makes the purchase in the shop normally, then the merchant receives the sales order and it is forwarded to the dropshipping supplier automatically or manually, depending on the system adopted. The supplier is then responsible for separating the product and dispatching it to the customer.
In these steps, it is highlighted that the customer relationship is with the virtual store, and the partner will directly impact consumer satisfaction with the brand, but without him knowing that another company is responsible for delivery.
Thus, the choice of dropshipping suppliers is essential, as these partners will influence the logistical capacity of e-commerce, but also the consumer’s own shopping experience.
How to find the best dropshipping suppliers?
Since dropshipping suppliers directly influence the sales capacity of e-commerce it is important that this choice is made cautiously.
Currently, it is possible to count on national or foreign partners, depending on the market niche, the products sold, and the tenant’s long-term objectives.
Below we highlight seven tips on how to choose the dropshipping suppliers for your business, ensuring greater reliability and efficiency in the processes. Check out!
Evaluate manufacturers vs. suppliers
One dropshipping option is to work directly with the product manufacturer, who is the one who owns the patent on the item. In this model, one can have advantages mainly by practicing more competitive prices in the market, being a more suitable option for retailers who work with highly segmented niches.
For an e-commerce that intends to work with different types of products, it is more advantageous to establish partnerships with different suppliers, being important to correctly develop the processes to guarantee efficiency.
Compare prices
The dropshipping model is known for providing lower profit margins for tenants, as they are calculated in the difference between the price charged by the supplier and the price paid by the final consumer.
For this strategy to give results, it is important to evaluate the prices of suppliers in order to guarantee profitability and the ability to consolidate the brand. However, it must be considered that very low prices, incompatible with the market, should be a reason for suspicion.
Rate delivery time
In order to start a partnership of this type, it is essential to consider the delivery time of requests and verify that the company is capable of meeting the deadlines initially agreed.
The delivery time must be calculated and informed to the customer correctly, which makes it important that it is stipulated with the partner and fulfilled. Very long deadlines are among the frequent reasons for abandoning the shopping cart, which means that the more agile the deliveries, the more competitive the e-commerce will be.
Search the refund policy
Even if the shopkeeper establishes partnerships with international dropshipping suppliers, it is important that the refund policy is evaluated, as the online store must follow the rules of the e-commerce law.
The consumer has the right to withdraw from the purchase within seven days after receiving the product, which ensures that he is refunded and returns the product.
Check out how to order
Some dropshipping companies have automated systems for requesting orders, which are preferable to manual ones and which can present errors, limiting the scalability of the business.
Another aspect to be observed is whether the partner requires a minimum order, which causes some requests to be delayed and delay the delivery of the product to the customer, impairing his experience.
Evaluate the partner’s exchange policy
As well as the refund policy, the exchange policy must also be evaluated in order to guarantee the delivery of quality products, compatible with those requested and under the appropriate conditions.
Therefore, establish partnerships with dropshipping suppliers who are committed to exchanging products when necessary.
Research your brand reputation
Finally, choosing a reliable supplier is never completely safe until you start working together and the results are consolidated, however, advance research is essential to ensure these goals.
Check with other tenants about the reputation of the chosen suppliers, if they keep the agreements signed initially and if the delivery of the goods is safe, on time and efficiently.
Considering these tips you can establish more consistent partnerships that will provide a better result for e-commerce in the short, medium and long term.
How important is a good supplier?
The choice of a good supplier is decisive in the chances of business success, influencing several aspects of e-commerce, such as:
- business scalability: a good logistical process is what allows the company to increase sales with operational capacity to meet new demands without jeopardizing the customer experience;
- customer satisfaction: the shopping experience is extremely influenced by the agility in the delivery of the purchased products, which makes the partner a determining factor in the business’s ability to promote a more satisfactory purchasing process;
- loyalty: compliance with deadlines, freight prices and differentials in the purchase process are what allows retaining and retaining customers, which in turn influences the virtual store’s ability to sell more and increase the average ticket;
- brand authority: the term refers to the brand reputation among consumers, and the more complaints and problems there are, the more the authority will be affected, affecting the consolidation of the brand;
- results in sales: finally, dropshipping will directly affect the results in sales of the brand, considering the possible profitability with the margin of products, the increase in sales, the best customer experience, among other factors.
Thus, it appears that the choice of dropshipping suppliers will be decisive for e-commerce to grow, to have better sales results and efficient management. Before defining your business partners, therefore, evaluate each of the aspects indicated.
