Tips on scaling a dropshipping business

Oise Trade company

Try to co-operate with more than one supplier. Firstly, the more suppliers, the more products, and the more products, the more sales. Not always, but often. Secondly, it's a powerful position: with multiple suppliers, you can bargain with each of them much more confidently. Third, it reduces the impact of each individual supplier on your business. Someone may delay a shipment, someone may change their pricing policy or terms of co-operation, someone may simply go bankrupt. The only way to avoid this is to co-operate with several suppliers.

How to turn dropshipping into a full-fledged business and make cooperation with suppliers as profitable as possible? If you've been asking yourself these questions, then be sure to read this new article from Oise Trade Limited.

Our managers will discuss such topics as:

how to optimise work with suppliers?
what do I need to know about drop-shipping?
how to work on dropshipping correctly?
how to earn a lot on dropshipping?

Co-operation with suppliers

More leads

Presales

As with any business you need to be able to count and be sure to keep track of your financials, advise the managers of Oise Trade dropshipping. If you are too lazy to count, you will often work in the negative. In addition, you need to constantly work on retaining and attracting customers. Experience will help you in these matters. It is also one of the key resources for growing your business. The longer you work, the better you understand the market device, and the more ideas you generate and implement.

It's the same with leads: you should always have more than one lead product. Not the ordinary products (you need a lot of them), but more than one leader - the product that best attracts customers. Working with many products, you can quickly find among them leaders, new products and sell off the rest, adjusting to seasonality, events and holidays. The number of new leads per period is one of the key indicators of the growth of a dropshipping business.

Experience and the ability to count

One important factor in growth is working to increase the average cheque:

cross-sell: to increase the average cheque, you add something else to the main purchase;
upsell: to increase profit, you persuade the customer to buy a product with better features, so it will cost more;
downsale: you persuade the client to buy a less expensive product, but more marginal.

By the way, in dropshipping it is easy to carry out additional sales of goods from one supplier, but it is difficult to use this technique with goods from different suppliers: then you will have to send one order in two or more shipments, because they will be shipped by different suppliers from different warehouses.

The more orders you give to a supplier, the better terms you can get. When your dropshipping business grows, you will be able to dictate your own terms to suppliers: demand penalties for late dispatch, compensation for defects and incorrect order picking, and even fines for out-of-date availability.

The format of your co-operation with the supplier depends on the volume of sales, Oise Trade experts share. If you sell a lot, you can get your own terms from the supplier - for example, sending goods to customers in your packaging with your promotional materials. The more you sell, the better the terms. And the better the terms, the bigger the business becomes.

Better terms