For aspiring entrepreneurs
, dropshipping is a great business model that doesn’t require much capital and has minimal startup risks needing to stock inventory. This retail fulfillment method doesn’t keep the products in stock, but rather uses a third-party supplier to ship it directly to the customer.
You won’t have to deal with purchasing inventory or managing a storage warehouse for rent
– which seems easy enough. But the dropshipping model does come with built-in complexities and day-to-day management you will need navigate smoothly. To help you achieve your e-commerce venture success, here are some tips that can go a long way in building a thriving dropshipping business.
1. Managing multiple suppliers
The biggest challenge of dropshipping business is managing the status of inventory across multiple suppliers. This is especially important since you wouldn’t want to be constantly facing out-of-stock products and miss out on sales opportunities. It might also affect repeat business and loyal customers.
Improve your order fulfillment ratio by engaging multiple suppliers with overlapping inventory. This minimises the risk of relying on only one supplier and facing issues like increased prices or going out of business. How you manage your suppliers will ultimately have an impact on the future and reputation of your business.
Similarly, the growth of your e-commerce also lies in being able to carry out your core business activities smoothly. Our property at 34 Boon Leat Terrace offers ancillary offices for rent, well-suited to provide the ideal environment to run your operations. Located at the fringe of CBD, this 6-storey warehouse is only 10 minutes away from Pasir Panjang MRT and has accessibility via West Coast Highway. Unit sizes range from 368 to 4,752 sqft – with furnishings like lights, aircon, carpet and windows available for selected units. Other features include 24-hour access, 4 loading bays, and season parking for cars & heavy vehicles.
2. Fulfilling orders
Now that you have multiple options for order fulfillment, how do you decide on the right supplier? There are a couple of ways to this. Firstly, if you have a preferred supplier that’s great to work with, you can assign all orders to them by default and automate the process. However, you’d want to ensure that they will be stocking most of the items you are selling – otherwise you will have to frequently deal with re-routing orders.
You can also choose to assign orders based on availability, which works best if you sell a large catalogue of products. This requires planning on routing each order depending on which supplier has the item in stock. Another method is by pricing, which can be accurately determined by using an automated system to calculate real-time supplier pricing, shipping rates and drop fees. As your business grows and you have built long-term relationships with your suppliers, you can also consider a bid amongst them to obtain the best pricing possible.
3. Providing customer support
It’s not a surprise to learn that many startups use Excel spreadsheets to manage customer enquiries and returns. While Excel has many great functions, it is not built for handling customer support. On that same note, managing support with single email inbox can also lead to service lapses and problems as your business grows.
One way to effectively address customers’ concern is to provide ready information for common questions. Upload FAQ articles on your website to help customers self-serve and find answers to their issues. In addition, invest in help desk software that provides a centralised location for your customer support correspondence and issues. With automation tools and customised features in a single platform, you can reduce response time and increase the efficiency of your customer support.
The good thing about running an online store is you don’t need to consider securing a brick-and-mortar location and incur high overheads. Nonetheless, you may want to put extra effort in ensuring your work environment can support your core operations and tasks – and looking for a small business office for rent
is a good way to go about it. Our property at Phoenix Park comprises a cluster of 11 colonial-style buildings, offering office units ranging from 90 to 1,550 sqft with lights, aircon and windows. Situated on Tanglin Road, this property was the former location of the Ministry of Home Affairs. There is easy accessibility via public transportations, with a bus stop located near the main entrance – and free regular shuttle buses are also provided. Due to its competitive rental pricing, lush greenery surroundings and proximity to Orchard Road, it’s no surprise why Phoenix Park appeals to many businesses.
Don’t miss our limited-time promotion! Enjoy 50% off rental for selected properties including offices, warehouses and industrial spaces when you sign up before 31 March 2021. Terms & conditions apply.