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Dropshipping in questions and answers

To start a business, to try an idea, to decide to make a change. We throw away a bunch of plans every day, thinking they are unrealistic. The hardest part is taking the first step. Especially if the idea requires significant investment.

If you've been wanting to start your own business for a long time, don't put it off. The world has moved to the Internet. Online shopping, watching movies, dating and learning. Start a business with dropshipping, a simple and affordable e-commerce model.

How does dropshipping work?

Dropshipping is a business model in which the seller acts as an intermediary between the consumer and the supplier.  The customer pays for the order, the dropshipper transmits the information to the supplier, and finally the supplier prepares the ordered goods for shipment, ensuring that they are delivered directly to the customer. The dropshipper is primarily focused on marketing and product promotion, while the supplier is responsible for the entire supply chain cycle. His concern is warehousing, availability, stock maintenance, packaging and delivery.

What are the benefits of dropshipping?

Dropshipping is a successful business model. You can expect a profit of 20-30% and a conversion rate of 2-3%. These parameters vary and depend on the niche.

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How do I start a dropshipping business?

The step-by-step process is roughly as follows: (1) choose a niche and product; (2) study the competitive market; (3) research, understand and segment the target audience; (4) search and analyse suppliers; (5) become a partner; (6) register on direct delivery sites or create your own website; (7) work on promoting and advertising the online shop; (8) promote the goods in social networks or through paid advertising; (9) work on customer loyalty.

What investment is needed to start dropshipping?

A large upfront investment will not be needed, as the dropshipper does not need to invest in stock management or warehouse rental.

Is it possible to work around the world?

Yes. The beauty of dropshipping is that it can work online. Customers can come from anywhere in the world.

Can you use more than one sales channel?

Absolutely. In fact, it is highly recommended to promote through several channels, such as eBay, Amazon, the HallaSystems website.

How much profit can I expect from dropshipping?

The profit margin from dropshipping averages 15-20% of the selling price of each product, and the average conversion rate of an e-commerce site is around 2%.

How do you promote an e-commerce website?

There are several ways to promote e-commerce websites. You can place ad units on profile websites, buy ads on YouTube, attract customers on social networking platforms, hold webinars. Contextual advertising on Google, targeted advertising on Facebook and Instagram work well. In order for a client to find a dropshipper shop by entering a query into a search engine, it is possible to work with website optimisation, maintain a blog, write useful and interesting articles.

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With the help of marketing analytics tools, specialists from Halla Systems Co. Ltd analyze customer sites, organic and referral traffic. They then develop plans for search engine promotion, contextual and banner advertising.

How to choose suppliers?

The supplier should be professional, familiar with the supply chain and have a reputation for supplying quality products. Before selecting a supplier, you need to gather as much information about the supplier as possible. Halla Systems will develop tailored partner programmes and help you find trusted and responsible suppliers.

Does a dropshipper need an online shop?

At first you can put your offers on Amazon, eBay and Alibaba. But in order to grow in your business, it is better to have your own online shop.

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