Small businesses have a unique set of challenges, and indeed advantages, when it comes to dropshipping. This new supply chain model of transporting products directly from dropship suppliers to the doorsteps of retailer’s customers has proved very popular with small businesses across the globe. The reason is manifold, but one key aspect is that they do not need to spend their limited capital to hold stock and transport products to their customers. Further, often small businesses do not have the funds needed to acquire the right logistical and technical expertise required in a conventional supply chain. Thus, dropship becomes a leveler of the playing field — ensuring that small businesses can compete on the big stage.
To ensure a streamlined dropship operation, it is very important that small businesses choose a specialized dropshipper that has expertise in a particular niche. While it’s tempting to offer a huge variety of products, the dropship suppliers that offer them tend to be huge conglomerates that don’t pay attention to quality as much as the smaller ones do. This is completely understandable — they have a huge portfolio to manage and thus have little time to deal with the smaller aspects of the supply chain. As a small business, it’s important to understand that you cannot compete on a dropship front with the big players in your industry, and hence you must carve out a niche for yourself by partnering with a dropship supplier that has knowledge of that niche.
Secondly, budding dropshippers should be cognisant of market trends, even more so than the traditional retailers and wholesalers. Whilst they have margins to play with in addition to a large portfolio, small businesses necessarily hedge their bets on a particular aspect of their industry. There are a multisite of ways to keep your hand on the industry pulse. These include both online and offline means. The former may be keeping an eye on industry magazines and engaging in discussion forums with both customers and suppliers, whilst the latter is attending trade fairs and going to visit brick and mortar aspects that specialize in your niche. For example, a handmade furniture store in London that attracts local enthusiasts is a great place to start if you’re in the industry. This is also where the benefits of an effective dropship supplier really come into play — they can allow you to change strategy quickly and put a different product style onto your website. This allows you to maneuver much faster than wholesalers and traditional retailers.