Currently, many people have participated in the Dropshipping model on Shopee and achieved significant income, up to tens of millions of dong each month. However, if you are still unclear about what Dropshipping on Shopee is? And how effective is Dropshipping on Shopee? Let’s explore with Optimal Agency in detail about this form of business. Let’s follow along!
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What is Dropshipping on Shopee?
Dropshipping on Shopee is becoming more and more popular, but not everyone understands this form of business. So, what is Shopee Dropshipping? Simply, this is a short way of saying Dropshipping on Shopee. This is a retail business model in which the seller does not need to spend capital to import goods into warehouses, or pack and transport products. In the Dropshipping model on Shopee, sellers cooperate with suppliers and conduct marketing to advertise products and attract potential customers. When a customer orders a product from your store, you just need to transfer the order to the supplier. The supplier will confirm and send the goods directly to the customer. After the order is successful, the money will be added to the bank account you registered with Shopee.
The profit from this job is the difference between the purchase price from the supplier and the selling price you set for the customer, after deducting marketing costs. This helps minimize financial risk and inventory costs while allowing you to focus on promoting your products and building your brand. With Shopee Dropshipping, you can take advantage of this e-commerce platform to start a business without worrying about storing or shipping goods. This is an extremely convenient online business method, suitable for those who want to start a business but do not have much initial investment capital.
Pros and cons of doing Dropshipping on Shopee?
Dropshipping on Shopee will bring significant financial benefits, but along with that, there are still specific limitations.
Pros
Dropshipping on Shopee brings many advantages, helping participants increase income without needing to invest large capital, and managing goods sources, and minimizing risks. Below are some outstanding advantages of this form of business:
- Abundant, diverse, and rich source of goods: Shopee is one of the largest e-commerce platforms, with many suppliers with a variety of products. This makes it easy for you to choose and sell many products that suit your customers’ needs.
- Easily list multiple products for sale at the same time: With Dropshipping, you can expand your product catalog quickly and easily. Just search and select products from suppliers on Shopee, and you can post them for sale without worrying about warehousing or inventory management.
- Be proactive in terms of time: Dropshipping does not require you to work according to a fixed time frame. You can freely choose your working time to suit your schedule, helping you balance work and life.
Cons
Besides the advantages, Dropshipping on Shopee also has certain disadvantages and risks that businesses need to keep in mind:
- High Competition: Since Dropshipping is a popular and accessible business model, competition on Shopee is very high. Many sellers offer similar products, which can make you compete on price and marketing strategies to attract customers.
- Relatively low profit per order: Due to high competition, you may have to lower your selling price to compete with other sellers. This leads to low profits per order, requiring you to sell a large number of products to achieve the desired income level.
- Easily affected by reputation because the source of goods on Shopee is quite large: Shopee is an open e-commerce platform, and the source of goods is rich but also uneven in quality. If the supplier does not ensure product quality or fails to deliver on time, your reputation with customers will be affected. This can lead to bad reviews and loss of potential customers.
In general, Dropshipping on Shopee brings many opportunities and advantages for those who want to start an online business without needing large capital. However, to be successful, you need to understand and overcome the disadvantages of this form of business while optimizing effective marketing and risk management strategies.
Things to note before doing dropshipping on Shopee
As informed, the Dropshipping business model on Shopee requires sellers to find sources of goods instead of preparing goods. Therefore, finding a reputable, quality and reasonably priced source of goods is extremely important. When having a quality source of goods, sellers will have the following benefits:
Product quality standards
- Providing customers with the best products at preferential prices, enhancing customers’ shopping experience.
- Helps build trust and credibility of the store with potential customers.
Promote purchasing activities
- Quality products will attract customers to come back to buy goods again, increasing sales and profits for the store.
- Create opportunities to receive positive feedback and appreciation from customers, helping to promote your store effectively.
To find a reputable and quality source of Shopee dropshipping goods, you can refer to the following two ways:
- Shopee is a rich source of goods with millions of products in many different industries such as household appliances, children’s toys, electronics, accessories, clothes, bags, decorations,… This is a useful source search channel, helping you easily find reputable and quality suppliers.
- In addition to Shopee, you can also search for dropshipping goods from many other channels such as Google, Facebook, TikTok, YouTube, and other business platforms such as PingGo, Netsale, or other e-commerce platforms. To search, you just need to enter keywords about the product or source, and many results will be returned for your reference.
However, when using these platforms, sellers need to pay attention to choosing and considering appropriate sources of goods to ensure appropriate quality and price. This not only helps you maintain your store’s reputation but also promotes sustainable business development. Similar to how to create Facebook ads for dropshipping.
How to do Dropshipping on Shopee?
Similar to other professions, Dropshipping on Shopee requires careful preparation and research. Although this business model is not too complicated, being better prepared than your competitors will help you save time and attract customers effectively. Below are detailed instructions on how to do Shopee Dropshipping that you can refer to and apply.
Step 1: Choose the right product
Researching and choosing products is the first important step before starting Dropshipping on Shopee. Research thoroughly about the market and shopping trends, identify popular and high-demand products to easily sell. You can refer to the following directions:
- Key products: Products that are in high demand and are sought after by customers throughout the year, such as home appliances, electronic accessories, etc.
- Personal products: Products that you create or customize according to your personal wishes, helping to create a difference and attract customers.
- Seasonal products: Products are sold seasonally throughout the year, such as t-shirts in summer, sweaters in winter.
- Hot trend products: Products that emerge following trends, attracting great attention from users on social networks.
For example, if you want to sell pet products, specifically cat accessories, you can use a keyword analysis tool like Simple Shopee or Mediasoft to search and analyze the keyword “cat accessories”. Based on the results obtained, you will know whether the product you are interested in is in the top potential products or not.
Step 2: Learn and collaborate with reputable units
Once you have found a suitable product, the next step is to find reputable units that provide that product. You can search directly on Shopee or through Facebook groups.
- Search directly on Shopee: Use the search engine on Shopee and enter keywords related to the industry you are interested in, then select the “Supplier” category to filter the results.
- Contact available suppliers on Shopee: If you see a specific product that you want to dropship, contact the seller to ask about dropshipping possibilities.
- Join a dropshipping group, forum, or community: Connect with experienced people and share information about trustworthy dropshipping suppliers.
- Use third-party services: Services like “Oberlo” or “DSM Tool” help find dropship suppliers on Shopee and other platforms.
When contacting suppliers, it is necessary to clearly discuss policies and commissions to avoid problems arising later. Some things to keep in mind when exchanging include discount levels, supplier information, dropshipping process, product information, return policy, and payment method.
Step 3: Set up Shopee store
After you have agreed on how to work with the supplier, you need to create a store on Shopee to start selling products. Steps to create a store include:
- Visit the Shopee.vn website and create a new account if you don’t have one.
- In the upper left corner of the screen, click “Become a Shopee seller”.
- Click the “Register” button and fill in all required information.
- Confirm registration via email or registered phone number.
- After successful registration, create products and start dropshipping on Shopee.
Step 4: Customer care
When a customer places an order, you need to send the order code to the supplier and transfer money to them in advance so they can handle the remaining delivery steps. After the goods are successfully delivered, Shopee will transfer the money to you, including the price difference.
During the sales process, you need to quickly support and answer customer questions. Set up an automatic reply message to respond when you can’t be online.
Step 5: Optimize Shopee Dropshipping
To operate an effective dropshipping business on Shopee, it is necessary to regularly optimize operating processes and deploy effective marketing campaigns. Some suggestions:
- Expand multi-platform sales channels such as Facebook, Zalo,… to reach more potential customers.
- Participate in Shopee promotions: Take advantage of big monthly sale programs to increase traffic and orders.
- Create freeship codes and exclusive discounts: Stimulate shopping by registering for reasonable voucher packages to retain customers.
By carefully preparing and following the steps above, you can succeed with the Dropshipping business model on Shopee.
In the content of the article above, we have listed for you the detailed content in the most accurate way. We hope that the information we have shared can help everyone learn about the concept of Dropshipping and take steps to successfully make money by Dropshipping on the Shopee platform.
Please refer to:
- Does Google Ads allow Dropshipping?
- How to target Facebook ads for Dropshipping?
- Do you know the benefits of Facebook ads?
FAQ
To do Dropshipping on TikTok, you need to do some basic steps. First, search and cooperate with reputable product suppliers. Then, create a TikTok account and build engaging content to attract viewers. Post product introduction videos, use effects, music and hot trends to increase interaction. Attach the product link to the bio or video so customers can easily buy. Advertise videos on other platforms such as Instagram and Facebook to expand coverage. Finally, follow up and take care of customers to ensure the best shopping experience.
To do Dropshipping on Amazon, you need to start by creating a selling account on Amazon and choosing the appropriate service package. Next, search and cooperate with reputable suppliers, ensuring they have the ability to respond to orders quickly and have good product quality. Upload products to Amazon, optimizing titles, descriptions, and keywords to increase visibility. When you have an order, you just need to transfer the order information to the supplier so they can send the goods directly to the customer. Track and manage orders, ensure on-time delivery, and resolve arising issues to maintain reputation on the platform.
