What is Dropshipping and how to do it? Suppliers and stores

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dropshipping
dropshipping

Do you want to start selling products online and experience what it feels like with the first sales? Dropshipping has long been an ecommerce business model widely used by sellers, but… what makes it so special?

If you don’t have much budget, dropshipping is an ideal alternative. And what is it really about? We anticipate that with this model you will not need to invest a large part of your investment in buying stock. Sounds good, right?

However, the challenge for the vast majority is finding a dropshipping provider. We will talk about all this in this article so that you can start creating your dropshipping store in Spain and make it a profitable business.

Dropshipping: What is it?

Dropshipping is an ecommerce retail model. For its part, the retailer is solely responsible for sales and customer service, while the role of the wholesaler will be to make all shipments.

Therefore, with this model the seller will not have to worry about shipping, returns or storage. Only he should focus on selling.

To better understand what dropshipping is, we are going to specify who are the agents that interact in this model:

  • Buyer.  There are not many changes for this one. Although what you may notice is that the packaging where you receive the product does not correspond to the store where you bought it.
  • Seller.  It is in charge of customer service, sales and, therefore, collection. But he never has the product in his hands.
  • Dropshipper or provider.  The seller places an order with the dropshipper, and the dropshipper sends it to the buyer. The supplier invoices the seller. An example of an international provider is Aliexpress.
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How to Dropship

The most profitable thing to start with your dropshipping store is to detect a niche, search for keywords and create content to position it in Google.

So once you get visibility and traffic, you can better negotiate with providers. Although you can also do it the other way around, first negotiate and then start creating.

Steps to make your Dropshipping store

So how do you dropship? These are the steps to follow to create a dropshipping store in Spain:

  • Select a profitable niche: It is recommended that the niche does not have too much competition, that there is a need to cover and that there are opportunities to position it and thus increase online sales.
  • Negotiate with the dropshipper: When negotiating with the dropshipper, the retailer must negotiate a reasonable price, with which they can make a profit margin. So start practicing your negotiation skills as soon as possible. We advise you to have two dropshipping providers in case one of them fails.
  • Choose the platform to create the online store: When you close the deal, you can now create your online store with the CMS that best suits your needs. If you need help with WordPress web design , don’t hesitate to ask us.
  • Manage the payment: After a user makes the payment in your online store, as a retailer or seller you will manage the payment, you will buy the product from the supplier and you will send the supplier the shipping information of the order that has just been made on your site. .
  • Send the shipping data to the supplier: Once the supplier receives the order from the seller, the seller will take care of the shipment of the merchandise and the returns. The delivery time must be taken care of and the seller must be aware that it is done within the agreed time. In addition, if you negotiated it with the seller, you must include an invoice.
  • Analyze the operation of the service: Finally, the seller must analyze the entire process and see if the client was satisfied with the service offered and solve the errors that the client found. The communication channel can be from an email (with a survey) or a private message through social networks.
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After being clear about how to do dropshipping with these steps, you will be able to implement marketing strategies to attract traffic and sales to the website. To do this, it will be key to develop an SEO strategy, create optimized content on a blog, launch email marketing campaigns and move social networks.

Dropshipping Providers

The piece that comes into play in dropshipping is the supplier, but sometimes finding the ideal one to sell your product becomes an odyssey.

If you have already decided to dropship in Spain, after deciding what products you are going to sell in your online store , the second step is to find suppliers (these can be manufacturers, suppliers and dropshippers).

Consider the following ways:

  • Directories where the manufacturers of the products you are interested in can be found.
  • Look for dropshipping listings offered by some companies like Coodex , Suppliers and Synergyweb .
  • Depending on the product, you can enter the website of the association, chamber of commerce, fairs…
  • Visit related physical stores and look at the labels of their products to find out who makes them.

Examples of Dropshipping providers in Spain

Depending on the product, these are some dropshipping providers:

  • DMI Computer : Dropshipping supplier with technological products.
  • E-Nuc : Specialized in spare parts for telephones, video games, unlocked mobiles…
  • Elta Hispania : Kitchen items and electrical appliances.
  • Globomatik : New technology and computing.
  • Last level : Gift items.

Tips for choosing a supplier or dropshipper

Finally, it is important that you identify a professional and serious provider that you can trust and avoid others that take advantage financially.

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To do this, here are some tips that can be very useful:

1. Process management: Serious dropshipping providers usually have sales representatives that show you a catalog, depending on the niche you are in, and answer all your questions.

2. Negotiation: Many ask you for a cost to close the deal. But official dropshippers only charge for each order and not for joining you.

3. Location: Start your search in the local market, near your area. Although you can find a great list on the Internet, you can be in for a big surprise and find providers near you. This would benefit you above all to negotiate short delivery times and resolve incidents.

4. Packaging: The dropshipper must take care of the packaging to offer a better customer experience. This includes having package tracking, the option to return the product using reverse logistics and including an invoice (or not). All this is vital to build customer trust.

CONCLUSIONS:

Before hiring a dropshipping provider you have to be legally constituted as a company. This requires selecting a legal form for your online store, registering with social security as a self-employed person and taking into account other legal issues regarding taxation.

Dropshipping in Spain is not easy. But it is a very effective alternative for many sellers who know in depth what dropshipping is, who bet and dedicate all their effort to this business model.

Without a doubt, dropshipping is a cheap option to sell online; with which you also do not need to have knowledge of logistics or technology. The only thing that will require more time will be to position your store well to gain visibility on Google and boost your sales.