Advice on adding an online shop using dropshipping

Discussion in 'Ecommerce Forum' started by tsm106, Oct 7, 2020.

  1. tsm106

    tsm106 UKBF Newcomer Free Member

    29 4
    I currently run an Interior Design business from home and have done for five years now. As business is feeling the pinch from the pandemic, I am looking to sell some good quality items of furniture and home accessories from my website.
    I have managed to find a reputable supplier who operates a dropshipping service, but need to carry out as much research as I can on this before I start.
    My main question is, using Paypal to purchase goods from my site, good or bad? I know they have hidden fees, but is there a better alternative to use?
    Also, is it best to sell low priced items/ larger items, and how many things should you sell to start with?
    I am sure I will learn a lot more along the way, but just want to be aware of pitfalls before I start.
    Any advice would be greatly received.
     
    Posted: Oct 7, 2020 By: tsm106 Member since: Dec 16, 2015
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    24,926 3,037
    You can use whatever service. Paypal is popular with buyers, you could offer multiple payment methods.

    Best to sell? Thats more difficult.
    Dropshipping will tend to be lower margin or higher price - your cost per unit will tend to be higher than wholesale price.
    Most importantly, you need to be updated regularly on stock levels. Otherwise you sell something then find its out of stock.

    You also need to factor in returns and lost items. Which you get to fund out of your profits.
     
    Posted: Oct 7, 2020 By: Mr D Member since: Feb 12, 2017
    #2
  3. wayzgoose

    wayzgoose UKBF Enthusiast Free Member

    861 131
    I'm not disagreeing with you on purpose, honest!
    Out of our five main suppliers, all will accept returns (non-personalised) and will replace lost consignments.
     
    Posted: Oct 7, 2020 By: wayzgoose Member since: Oct 9, 2007
    #3
  4. tsm106

    tsm106 UKBF Newcomer Free Member

    29 4
     
    Posted: Oct 7, 2020 By: tsm106 Member since: Dec 16, 2015
    #4
  5. Darren_Ssc

    Darren_Ssc UKBF Ace Free Member

    1,377 457
    Selling low priced items is likely to cost you money since you'll never achieve a critical volume of sales. The market is saturated.

    Selling high cost/high margin items makes more sense but the obvious problem is what you sell. You'll need to allow for a lot of trial and error in order to develop a nose for what sells and what doesn't. Also, if you're drop shipping you're also competing with a lot of others doing the same and a lot of these people are not making money.

    I work with 2 furniture retailers and after 5 years I think I have a fair idea but there are always surprises. One thing I will tell you for free, offering finance in one way or another is one of the most effective things you can do. There is one company who have mastered this into an art form and have reaped the benefits as a consequence.
     
    Posted: Oct 8, 2020 By: Darren_Ssc Member since: Mar 1, 2019
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  6. tsm106

    tsm106 UKBF Newcomer Free Member

    29 4

    Thanks for your advice, it’s always good to get it from people with experience of these things.
    The dropshipping service will be in addition to my Interior Design service, so it won’t be my main form of income. Just a way of bringing in some extra funds while we go through these unprecedented times. So I will use it to compliment what I already do, and sell items linked to the home and styling.
    I was thinking of selling some smaller home accessories until I get more confident in the process, and will move onto larger things later?
    Hopefully by doing it this way round, I should learn by any mistakes, and not get hit too badly with issues developing from lower cost items.
     
    Posted: Oct 8, 2020 By: tsm106 Member since: Dec 16, 2015
    #6