Dropshipping Products Worldwide: What You Need to Know
Dropshipping is a business model that lets you sell products without inventory. As it is the supplier who will handle the fulfillment of customer orders, all you have to focus on is the acquisition of customers, processing of orders, and providing customer service. With this model, you’ll be able to expand your customer base to include international consumers by dropshipping products worldwide.
Many dropshipping suppliers have established strong tie-ups with shipping companies which allows them to ship globally and at very affordable rates. China suppliers, for example, use ePacket to ship their goods to customers located in 39 countries. For those countries not supported by ePacket, the company offers pricing quotes to suppliers who want to ship packages to these locations. It will take more days than shipping to the US but the package will generally reach the customers.
Although drop shipping products worldwide is something you can explore anytime, you must plan it out before you start accepting international orders. This way you’ll be able to determine if selling to countries outside your own will be worth the trouble.
Take note that drop shipping globally differs from dropshipping locally in the following aspects:
When you create a plan on dropshipping products worldwide, there are many factors you have to consider including:
- The countries you want to drop ship to.
- The level of competition in these countries.
- The dropshipping suppliers you’ll be partnering with for worldwide shipping arrangement.
- The number of payment gateways to use.
- The promotional campaigns you’ll be running for these countries.
- The customer service skills you’ll need to cater to multilingual customers.
Create a list of countries you want to drop ship to.
Although you can drop ship products to any countries worldwide, it doesn’t mean that you’ll sell to the entire 195 countries in the world. Every country has its policies and restrictions when it comes to trading which is why you should be extra careful when selecting countries to drop ship to. Don’t base your selection to the product demand only. Here are the steps you can take to come up with the most promising countries to sell dropshipping products.
- Research the countries that may have demands of the products you are selling using Google Trends and create a list.
- If you don’t have the fund to have your whole store translated into different languages, choose only countries with English-speaking population.
- Consider the market differences in each country. What may be a fair price in Norway might be deemed expensive in Mexico. If you sell your products to both countries, chances are your conversion rate for Mexican consumers will be lower than Norwegian consumers.
- Ensure that chosen countries have postal services in place. Some countries have very strict custom policies or defective postal services which increases the probability of the package getting lost in transit. Suppliers might also charge an extra fee for shipping to some countries so make sure that you include that scenario when choosing the countries you want to drop ship to.
Assess the level of competition for your products.
Dropshipping is an industry with a high level of competition. Running promotional campaigns will be costly and winning over the competition will be more difficult. Yet there is still a possibility to break into the market when the competitors are selling low-quality products or lacking in promotional ideas. If you found the competition too tough for you. Might as well focus on other countries where you’ll have a higher chance of winning.
Pick the right suppliers.
In a dropshipping business, the reliability of your supplier matters. Read this post to learn how you can choose the right supplier for your dropshipping business. The suppliers you choose must have the `capacity to ship products to the countries you want to sell to and can provide the tracking code that you can email to your customers to allow them to track the progress of their packages once shipped.
Setup payment gateways that are suitable for international payment transactions.
Ensure that you have the payment gateways available in the countries you are selling to. Dropshipping products worldwide means you have to accept payments in various currencies and payment methods so make sure that your store is prepared for that. Find out the advantages of using multiple payment gateways for international dropshipping in this article.
Plan promotional campaigns that are suitable for each country.
Promoting to a global market involves considering the culture, traditions, and history of the countries where your customers reside. What may be considered acceptable promotion in the US may put off Indian consumers. Therefore research your target market demographics very well so you can create ad campaigns that would have maximum impact on each country. You can make use of free marketing strategies to reduce your ad expenses.
Provide valuable customer service.
Always remember that a customer can make or break your dropshipping business. A dissatisfied customer will not hesitate to leave negative reviews about your store and malign your reputation on social media. To avoid these damaging consequences, make sure that you provide great customer service to all your customers. By adding value to your dropshipping business, your customers will love buying from you and will be happy to tell other people about your business. You can find ways to add value in your business here.
Dropshipping products worldwide is one method to generate more profits for your dropshipping business. While it is something you can explore immediately, it would be difficult for a beginner who lacks the expertise and experience to run a dropshipping business, much more deal with eCommerce frauds. Starting a business by drop shipping locally is less risky than dropshipping internationally. It will also give you time to establish your dropshipping business before you expand your operation to include consumers worldwide. Yet, if you believe you’re ready for the challenges dropshipping products worldwide brings, then go for it.