Memo on dropshipper service

We’ve seen how the internet and smartphone applications have revolutionized our business. Despite the fact that we already have a strong online presence, it has been hampered by pricey shipping options, storage issues, and fierce rivalry. A smart dropshipping service should be set up in order to uphold our brand, boost sales, and strengthen our brand position. So, in order to keep up with modern marketing techniques, our company should engage in dropshipping. The company will rely on suppliers to deliver goods to clients rather than maintaining inventory of the goods. We will therefore provide marketing services by connecting customers and vendors, and we will profit by charging more than the above the current market price of the product.

Top 3 irresistible reasons to start Dropshipping Service

The organization can offer a wide range of products

Since the organization will to be involved in production, delivery and storage of goods, we will be able to offer w wide range of products to large and diverse customer base. More people are turning internet for information about their purchasing decisions, which makes internet marketing a highly profitable enterprise.

Increased cash flow

The organization will not stock the product and will not pay for an item until it is sold. The flexibility of mobile applications and increased use of social media will allow the organization find customers in an efficient and timely manner (Hyun, 2006). With dropshipping services, the organization will not worry about packing, after sales services, size and colour of goods. The organization will offer diferent variety of products by listing them on the website and the supplier will handle the rest.

Cost of starting drop ship service is low

Once website and mobile infrastructure e have been set, the organization can start selling products with loess investment needs. The organization will only cover the cost of building and maintaining a dynamic website, mobile applications and social media platforms.

Benefits of dropshipping to the organization

How dropshipping service will benefit this organization

Like any other retail business, the organization will make profit on the difference between the supplier’s price and selling price of products. Thus, sourcing of goods is a crucial step in dropshipping. With a good marketing strategy, this service will give us more profit with price products.

Retailers and agents involved in marketing products will benefit by getting a percentage of the sales commission which can be paid by the organization on behalf of the supplier or paid by the wholesaler directly.

Dropshipping is an attractive option for expanding the organization’s merchandize available for purchase. If this service is developed and used properly, it can greatly reduce the distribution costs and polish service level.

Action for maximum dropshipping profitability

Selection of A- Level suppliers

According to Salmon (20120, there are four levels of vendors linked with dropshipping. A–level vendors can deliver up to 100 % of items and meet our organization’s and customer expectations. Our organization will deal with A- level vendors for effective dropshipping service. B- Level suppliers can only meet our organizations standard levels to a certain order amount, while C and D- level vendors have known cases of underperforming.

Selection of items that exceed customer requirements

The organization should deliberate whether the products have attributes that fit dropshipping strategy. If the attributes met the requirements, the organization should consider whether the supplier’s supply infrastructure supports dropshipping.

Controlling dropshipping processes

The purpose of this process is to ensure that vendors deliver quality services. The organization will control the process that is visible to the customers by taking responsibility of timing, messaging, feedback and frequency during communication process.

How to improve sales in case the items done sell as expected

To increase profits, the dropshipping service will receive products directly from the supplier so that the organization will not incur membership fee.

Dropshippers benefit from the charging higher than the supplier’s price. to remain competitive and reach more markets, the organization will contact a wide range of suppliers and put the price slightly above the vendors price. As a result, price sensitive customers will find it appealing to do business with our organization and therefore improve sales.

If poor performance of products was caused by lack of sufficient information, the organization can contact the vendors for product images and other descriptions to use in the website and similar advertising media.

Digital channels to market dropshipping service

E-mail Marketing

E-mail marketing will help market items to targeted customers. It is a great way for the dropshipper to get new customers and establish strong relationships with existing customers. A specific domain for interacting with customers will be top priority.

Social Media Marketing

The most effective social networks for dropshipping include: Facebook, Twitter, YouTube and MySpace. Social media allows user to give comments, take part in discussions, and seek clarification and forward complaints.

Display Advertising

The organization can reach potential customers by putting display ads of items using third party sites. The ads will range from overlays, videos, boxes and interactive leads linked to the dropshippers website. Given that many people visit websites on a daily basis, display advertising will not only create awareness but also generate sufficient traffic that will translate to leads.

Cross cultural and multinational implications of dropshipping

Dropshipping is highly influenced by cultural factors which affects communication. Cultural factors will influence how dropshipping service will be reflected in the international platform (Guang and Trotter, 2012). It is therefore critical that the organization understands how to communicate cross-culturally to ensure successful communication to a wide range of heterogonous audience. Effective cross cultural communication requires that our organization ensures markets are viable which can be achieved by studying the culture of diferent market segments.

Conclusion

Global competition has resulted to new products being developed faster than before. As a result, companies with a global presence, including our organization, find it difficult to sustain customer base while maintaining profitability. Having a stock of electronic assets such as phones and computers is risky as new models that appeal to customers changing needs keep emerging. To solve this problem, dropshipping service will take the stock of the organizations hands. All the organization needs is establish an online shop, advertise and create a relationships with suppliers. Also, the need for extra human resource will be eliminated. To ensure effective communication, the organization will have to understand cross-cultural factors that are culture to the success of dropshipping service. Culture affects communication and the effectiveness of advertising.

References

Guang, T., & Trotter, D. (2012). Key issues in cross-cultural business communication: Anthropological approaches to international business. African Journal of Business Management, 6(22), 6456.

Hyun, S.K. (2006). Impact of mobile-commerce: benefits, technology and Strategic Issue and Implementation. Journal of Applied Sciences, 6(12), 2523-2531.

Salmon, Kurt (2012). Dropshipping Done Right: Three key priorities for businesses