The pros and cons of dropshipping

Starting entrepreneurs who start a webshop are increasingly using dropshipping. You do not have to manage your own stock and the producer delivers directly to the customer. What is dropshipping, how do you get the most out of it and what should you take into account?

What is Dropshipping?

The easiest way to describe dropshipping is to resell other people’s products with this method. An owner of a webshop offers certain products, but does not have them in stock.

The customer places the order through your webshop , you pass the order on to the supplier who sends the product directly to the customer. 

Logistics process

Take a webshop, specialized in agricultural products, as an example. A farmer would like to order a country fence from your webshop, you just don’t have space to store a stock of country fences.

With dropshipping you place the customer ‘s order to the producer. He then delivers the end product directly to the customer.

The customer pays the sales price to you, you pay the supplier the purchase price plus shipping costs and an amount for order processing. The difference between them is your profit.

It is an almost risk-free form of business. You completely outsource the logistics process. Furthermore, you do not have to invest in stocks, you do not have to rent extra storage space, you have no purchasing risk and no personnel is needed to ship the products.

What are the pros and cons of inventory management?

Stock management is a difficult aspect for many owners of a webshop. After a while, whoever has the stock in-house usually faces a dilemma. For example, as a small-scale webshop you store the products in the attic or in the office.

Until you grow out, you have to store everything in the shed or are faced with the choice of renting an external building. Apart from this housing of the products , there is also the logistics aspect. The products must be ordered, packed and shipped.

Fulfillment

An alternative to this is fulfillment. You hand over the entire logistics process to an external party. That is to say: the complete order processing, including customer service and returns processing. It gives you the space to fully concentrate on business and the growth of the webshop .

The big difference with dropshipping is that you still have to manage a stock yourself with fulfillment. You only store the stock at the external company that takes over the logistics process from you. So you have to buy the products yourself, and that has the risk that you can be left with a stock.

Marketing Strategies for the Female Psyche

Currently, it is almost always women who make purchasing decisions about beauty products; but in all other goods and services related to the home and family. This is why it is necessary to define Marketing strategies for the female psyche.

The role of women has changed considerably in recent years. The number of women is increasing; that they are educating and incorporating the productive sector, increasingly climbing to positions of importance in different areas, giving them enormous purchasing power.

Female Psyche

It is important to take into account the way of acting and thinking of women when preparing the strategies of your marketing plan; Because it has been shown that each time it has a predominant weight in purchasing actions, as well as in consumer trends.

Women can easily become ambassadors or detractors of a brand or product. When they like a product or are satisfied with a certain service, they share their experience with family and friends, spontaneously becoming ambassadors and defenders of this brand.

But when the product is not pleasing to them, they become their worst detractors. And given the enormous capacity of influence, which they have in the family nucleus and its environment, it must be taken into account. They are the ones who ultimately decide what products to buy or not in their homes.

The high decision-making power that women have when buying goods and services for the home; In addition to the considerable purchasing power they are achieving, it has made companies shift their focus to this niche.

This is reflected in a marked tendency to design marketing strategies for the female psyche, for which it is recommended to take into consideration the following aspects.

Emphasize the emotional factor

Women buy, not only to satisfy a need; rather, they enjoy making the purchase. And they tend to lean towards those products that have a striking aesthetic character. A successful strategy must exploit those characteristics; without forgetting the functionality of the product.

Avoid using stereotype

When launching a marketing campaign, avoid falling preconceived stereotypes, which assume that all women are equal or have the same tastes. Not all women hate sports; not all women love staying home and having children; requires further study.

Build relationships

Marketing strategies must be oriented towards building strong relationships that understand the feelings of the female audience. Advertising campaigns should present useful products for women and show real-life women in real situations.

Renew Products

Don’t try to give him bad adaptations; Because when they suspect that the product or service was not initially designed for them, they tend to reject it. To offer a product for women, it is necessary to know their needs and present a serious proposal.

It should be noted that marketing strategies for the female psyche are a consequence of companies’ efforts; for paying attention to this sector of the market, which has been minimized and underestimated for years. But it is showing that it has true potential and that it can be exploited.