What is a dropshipping business

DropShipping Shop: Your own online shop for DropShipping

Starting your own internet company is certainly one of the simpler options among all forms of founding. Founders benefit above all from the extremely low entry barriers and can usually start generating their first sales within a very short time. However, one thing is required in any case: Your own web shop and this is exactly where many aspiring entrepreneurs feel overwhelmed.

 

The web shop as a prerequisite for online trading

Just as brick-and-mortar retailers need their own shop in the best possible location, in the right size and with appropriate equipment in order to be able to operate their business at all, no online retailer can do without their own web shop. Your own shop forms the external framework for your sales activities on the Internet and is absolutely irreplaceable.

Every online shop has two important components. On the one hand, there is the so-called front end. This includes everything that the visitor of your pages gets to see, for example the start page, the various product categories, the individual article pages, the shopping cart or the checkout area. On the other hand, the web shop has what is known as the backend. This is the interface that you and your employees use to manage the shop. From here you can make certain adjustments, add articles, start and control actions and campaigns, view and process incoming orders and also call up statistics and evaluations.

In addition, web shops are equipped with functions that establish connections to external partners. Such interfaces can make the day-to-day work of an online retailer considerably easier. This can, for example, be the option of automatically forwarding incoming orders to the respective suppliers or of checking the inventories of manufacturers and wholesalers in real time in order to only actively offer items in the shop that are currently actually available. At this point you can see that such additional interfaces are very important, especially for drop shipping retailers, and are of crucial importance in terms of the amount of work involved.

 


 

The choice is yours: two options for your success

So far we have seen that there is no way around having your own web shop anyway if you want to start an online trade. If this is to be implemented on the basis of DropShipping, then some additional requirements apply to the shop solution. As a registered user of DropShipping.de, you can enjoy a very special benefit in this context. In the login we present you with two excellent shop systems with which you can start your business immediately. And the best thing about it: One of the systems is even completely free of charge for you.

Before you decide on a specific shop system, we would like to draw your attention to the fact that there are basically two different types of systems, both of which are suitable for you. On the one hand, this is a turnkey shop that is made available to you by a DropShipping supplier.

This is of course tailored to the range of the individual manufacturer or wholesaler and usually offers you all the functions you need to get started immediately on this basis. On the other hand, you can also use any shop system and have it individually adapted to your requirements as a DropShipper. In the following we will tell you a little more about the two options and introduce you to their properties, advantages and disadvantages.

 


 

  

Option 1: The shop directly from the supplier

The option is obvious, quick and convenient. Many DropShipping suppliers now offer their dealers their own shop system that can be used immediately to sell their products on the Internet. The shops are usually adapted to the respective product area in terms of design and structure. They can be used either free of charge or for a mostly low and, above all, standardized fee. And of course such web shops offer a direct connection to the dropshipping supplier, automatically transfer their articles to their own range, check stocks in real time and forward incoming orders independently. In addition, in many cases in the back office they provide information about orders, products that have already been accepted and about open and paid invoices.

With their own shops, the DropShipping suppliers naturally pursue the objective of promoting the sale of their own products. As a result, the systems are usually quite deliberately unable to manage items from other suppliers or their own offers. Also with regard to integrated marketing and sales promotion instruments, pronounced extensions are not the order of the day. Overall, retailers tend to have to make concessions when it comes to customization and get along with the options that the shop system provides for them.

DropShipping shops directly from the supplier offer a good solution for newcomers to online trading who initially want to limit themselves to the product area and the items of a single manufacturer or wholesaler who do not spend a lot of time planning and setting up individual shop systems want to invest and who value standardized and rather low costs.

 


 

DropShipping shop example 1: ALSO Deutschland GmbH

The industry leader in computers, telecommunications, consumer electronics and accessories

ALSO Deutschland GmbH specializes in the trade in computers, computer accessories and peripheral devices as well as in the sale of products from the fields of telecommunications and entertainment electronics.

The Group's extensive delivery program is based on more than 160,000 different products. These include many branded products as well as cheaper offers from lesser-known manufacturers. Overall, the company's range covers all the needs and wishes of modern customers in the named sectors and enjoys an excellent reputation on the market.

 

The ALSO Deutschland GmbH drop shipping shop

ALSO Deutschland GmbH offers its affiliated dealers and resellers both drop shipping and its own dealer shop. The rental shop is available in different expansion stages, which differ from one another in terms of their range of functions. Basically, both the Group's products and your own articles can be set here. The rental shop is available from a monthly fee of 95.00 euros, depending on the expansion stage. Product texts, technical data and product images can be taken from the ALSO database. Affiliated online retailers can book various service packages with regard to returns and complaints. Incoming orders are transmitted to the ALSO system with just one click. The availability of products is checked automatically.

 


 

DropShipping shop example 2: HEGA GmbH

The multi-brand wholesaler for pet supplies

Founded in 1990, HEGA GmbH is now one of the largest multi-brand providers of products for everything to do with pet supplies. A total of 70 employees are busy here with the purchase of goods, the sale to animal markets, hardware stores, garden centers and online retailers, the logistical processing and the support of the affiliated trading partners.

The wholesaler's extensive range is based on over 6,000 products. This includes a large selection of feed, litter for various small animals and numerous accessory products.

 

The drop shipping shop of HEGA GmbH

For interested online retailers, HEGA GmbH provides extensive drop shipping functions as well as its own rental shop. Company products and your own articles can be added to the shop system as desired. The required product texts and images for HEGA products can be taken directly from their system. Incoming orders are automatically transferred to the wholesaler, from where they are reliably processed and dispatched. The design of the shop can be individually adapted to the wishes and ideas of the respective online retailer. HEGA GmbH charges a flat rate of 39.00 euros for the use of the rental shop. The availability of the ordered products is checked by the system within 15 minutes of the order being received. The delivery quota is currently 98 percent in relation to the range of products.

 


 

  

Option 2: Your own shop with a connection to your suppliers

The second option conceals the solutions for the individualists among the budding online retailers. You can use any shop system, of which countless are offered on the market today. Here you not only make the upcoming individualizations in terms of design and layout, structure and user guidance as well as equipment with additional functions and options. The system is also intensively tailored to the special requirements for drop shipping.

For example, it ensures that the system can immediately take over article data from different manufacturers and wholesalers, creates a direct evaluation of the current stock levels of the suppliers and, above all, sets up an automatic transfer of incoming orders to the respective dropshipping business partner. The various shop systems on the market are similar to one another in terms of the basic range of functions and the integrated expansion options. Nevertheless, the various products also have individual priorities, so that as a retailer you have the opportunity to choose a system that optimally corresponds to your own ideas.

Above all, such systems offer a high degree of individuality and independence. As a retailer, one does not commit to individual suppliers, but retains permanent control over the selection of business partners and the adjustment of the range. In return, however, you don't have to deal with a turnkey system, you have to do a lot of preparatory work before you can really get started. If you have good programming skills yourself, you can do the setup yourself. If this is not the case, then you have to take into account the fees for external programmers within your own planning.

We provide you with two shop systems that are ideally suited for your own DropShipping business and simply offer everything an entrepreneur's heart could desire after registration in detail in the members area. With both of these professional solutions, you are completely independent of suppliers and can act completely individually in terms of design and layout, functions and structure.

 


 

The optimal shop solution fits your requirements

Basically, you can say that both the “all in one” solution from the supplier and your own shop with a direct connection to various suppliers work as a platform for the operation of your online business. Both options are associated with individual properties, advantages and disadvantages. How heavy these are, however, depends on the one hand on the specific shop system and on the other hand on your individual requirements. It is therefore not possible to answer in a standardized manner which solution is the better. The way to the right decision for you therefore always leads to an intensive examination of your personal requirements and priorities.

The following table is intended to help you prepare for the decision to be made. We have noted a whole series of specific requirements for our own web shop in the “Properties” column and in the two columns we have defined how these requirements are met by the respective shop systems.

Just go through the points in order and in the first step just think about how important each aspect is to you. For example, start with the item “Budget”. Do you have financial resources that you could invest in developing your own shop? In any case, you will have to spend such expenses if you decide to set up your own shop and optimize it for drop shipping operations. How high the costs will actually be depends on your personal requirements.

If you decide instead for a shop from the DropShipping supplier, then you can assume standardized costs. Most providers make their systems available for a monthly fee. In addition, there may be a one-time setup fee. In any case, you know the costs incurred from the start and can plan them firmly.

Now carry out similar considerations for all the properties and areas listed and in this way develop a basis for your decision.

 

propertiesSupplier shopOwn shop
» budgetstandardizeddepending on the expenditure
» Programming skillsnot mandatoryuseful
» individualitylowpronounced
» independencelimitedfull
» technical possibilitiesrather lowextensive
» rangelimitedfree
» layoutrather uniformindividually
» expenditurelowhigher
» many supplierslimitedpossible

 


 

  

With these tips you will make the decision for your shop system right away

In online trading, the shop system is in a certain way the heart of the entire business. It depends on how easy it will be for you to get your company on the road to success and keep it on the road to success. The main thing is that your shop software offers you all the necessary functions and options and at the same time ensures that visitors and customers feel comfortable with you and can quickly find their way around.

There is another requirement for DropShipper. Here the shop system decides to what extent daily recurring work steps, which are typical for this type of trade, can be automated. We're talking about special DropShipping functions that ultimately determine how much work you have to do personally. The following tips will do all you can to help you quickly and specifically select the right shop system for your drop shipping business.

 

 

  

Carefully analyze your own needs

At the beginning of the decision-making process for suitable shop software, there should always be the definition and determination of personal requirements. IT experts refer to the result of such a process as a requirement specification. All software requirements are carefully noted here. The specification is then used in the further course of the standardized check whether a certain shop solution really fits the individual requirements or whether there are any gaps. If this is the case, then you can always weigh up whether you can come to terms with a certain deficit in the software, because the other features are all the more convincing.

In any case, it is avoided that an important requirement aspect is forgotten or overlooked. So take a little time and carefully analyze what your shop system must be able to do and what the software is all about. Arrange the points noted down in order of importance and make sure that each requirement point is clearly and comprehensibly described. Refrain from including insignificant points and obvious things in the list and, conversely, make sure that nothing decisive is missing.

 

 

  

Get an overview of the offers on the market

Several years ago there were hardly any shop systems on the market. If you wanted to set up your own business as a retailer, in many cases you had to come to terms with the few solutions and be satisfied with their functions. It was not for nothing that in the early days of e-commerce there were many shop operators who came from the field of programming themselves and who developed their shop programs themselves. Today the situation is completely different. There are now shop solutions like a dime a dozen and the range of systems offered is huge.

So that you can actually work with the optimal solution in the end, we recommend that you look very carefully at the current offer on the market. Of course, the Internet makes this task a lot easier for you. So start an extensive research and get an impression of the available systems for yourself. These can be roughly divided into purchase systems, rental systems and free systems. Bear in mind that the free shop programs usually have to be adjusted and set up in a rather complex manner. So even with the supposedly free solutions, there are costs and effort that you should quantify and take into account.

 

 

  

Look out for special DropShipping functions

As a DropShipping retailer, your business model differs significantly from that of your conventionally working competitors in many areas.First and foremost, you benefit from many advantages. These include, for example, the low capital requirement, the low running costs and the excellent ratio between income and working hours. What many budding dropshippers do not understand: You have the opportunity to increase these advantages significantly if you pay attention to a few additional functions when choosing your shop system.

Right at the front is the option that your program automatically forwards incoming orders to the respective supplier. This ensures that you don't have to deal with this time-consuming task, which can also often lead to errors. A second example of such special DropShipping functions is the automatic comparison between the current stocks of your suppliers and the display of products on your shop pages. In concrete terms: Articles that are currently not available are temporarily automatically removed from the range. If the product is available again, it will appear again on your shop pages. When deciding on your DropShipping shop system, pay attention to such functions and features.

 

 

  

Inquire about experiences and reviews

The selection process for shop software is usually mainly characterized by facts and figures. Here it is important to compare different features with one another, to assess capacities and to check the available systems for important functions. This constant preoccupation with relevant information is particularly stressful if you are not a computer specialist or programmer yourself. In addition, we therefore recommend that you look around specifically for experience reports and reviews. Search the Internet for relevant assessments that will help you to select your personal shop software even better and more well-founded.

Of course, that doesn't mean you should skip the technical review and analysis of the features and options available. Rather, it is a useful addition that gives you an expanded impression and broadens your horizons. When researching relevant experiences, you will often come across shop solutions that you have not even thought of before and where it can be worthwhile to take a look at the respective software. Always check reviews for plausibility. It can also be clumsy advertising or discrediting by the competition.

 

 

  

Before making a decision, check whether all criteria have been met

Once you have spent a long time looking for a suitable shop solution for your drop shipping business, you will be relieved when the right software ultimately emerges. In this situation, however, it happens to many budding entrepreneurs that they are so enthusiastic about finally having discovered a solution that they may fail to take a particularly critical look at the specific shop system.

Before making the final decision on a shop solution, we strongly advise you to refer to your original catalog of requirements and finally to check whether the system really fulfills all of the conditions that you have defined. Often the decision is instead, unfortunately, more of an indicator that the DropShipper no longer wants to make a further comparison and would finally get started with his own business. Likewise, it can also happen that you are relieved that you have finally found a particularly simple, uncomplicated or even cheap solution and in this situation you refrain from taking a careful look at your criteria. For this reason, make a firm commitment to carry out one final thorough examination before making any binding decision.

 


 

Once your own DropShipping Shop has been set up and set up, there is hardly anything standing in the way of success. Now the most important thing is to decide on the optimal marketing. That's why you learn with us 5 strategies for your success know.

 

About the author Sebastian Huke