How do you start selling your business

Can you sell on the internet without stock?

Sell ​​on the internet with no inventory and not worry about where to put the goods ... is it really possible?

Or more importantly, is it financially feasible?

Not only is it possible, but in this article we are also going to tell you how to build a business yourself without inventory. Get ready because today we're going to bring you to DooFinder explain everything you need to know about dropshipping and affiliate marketing.

Are you ready?

Then we will build your business without inventory.

What is an online shop with no inventory?

When you think of managing an e-commerce, you think of an online version of a traditional physical store. You get paid for a product and you ship it to the customer.

The basis of these online businesses is that you are merely the distributor.All you have to do is focus on selling and promoting.

And how can I sell on the Internet if I don't have the product?

There are 2 ways to do this type of business. While the first on the Dropshipping system is based, the second is based on Affiliate Marketing or Affiliate Programs.

We explain both options to you:

  • Dropshipping stores: You are working with a provider who allows you to sell goods from their catalog. When a customer buys from you, it is the supplier who takes care of the shipping.
  • Affiliate Shops: With an affiliation, you recommend other people's products on your website. And when someone buys you get a commission.

With both models you don't need to worry about the inventory, nor about the packagingand shipping. They only care about the commercial aspect.

Even if the basis is the same, these two systems work completely differently.

How does a dropshipping business work?

Dropshipping is an online shop where you work hand in hand with a supplier. In summary, it works as follows:

1. Find the products that you want to sell

The first thing you need to do before starting a business is a market research. This will help you choose the industry you want to focus on and will tell you who your customers will be.

When you have made these decisions, select the products that are most appealing. Don't make the mistake of just looking at the price also weigh the demand and whether there are additional items for it.

Now it is time to find a supplier (who accepts dropshipping) that sells the products you have selected.

2. Select the best provider or dropshipper

This is a very important point because this is where you choose Your "business partner". Remember that many factors depend on it. The 3 most important are among others:

  • Product quality
  • Efficient delivery management
  • Profit margin

Before choosing your dropshipper, it is a good idea to gather as much information as possible about them. It would be good as well to buy one of its products beforehand to check the quality.

If you want to learn more about how to choose your provider, then read this article.

3. Upload the products to your website

 

After you have selected your dropshipper, you can upload its product catalog to your online shop. But caution is advised here.

Your provider will forward the product descriptions to you in case you want to use them exactly in your online shop. But that would be a big mistake.

You are not the only customer of this provider, which means that there are many more online stores with the same product description. Aside from making a bad impression, it also destroys Your SEO positioning.

Google will recognize that all texts are the same and will assume that it is copied content.That can cost you dearly.

4. Start selling

What if a person buys something here? Very easily! At this moment you contact your provider and inform him about the sale.

This is also the moment you pay. That is a very important point because this means that you only pay your provider for sales made.

This saves you an initial investment in products.

5. The product is being sent

After paying, the dropshipper will take care of the packaging and shipping.

At the beginning it is important to make sure that the delivery dates are adhered to and that the goods arrive properly at the customer. Don't neglect this point because Incorrect shipping can cause you to lose your customers and other purchases.

How does an affiliate shop work

The affiliate model is for you to recommend products that are sold by other people. With this online sales method without stock, the big difference to dropshipping is the verb "recommend" we use.

In your online store, you will talk about the benefits of the product and why someone should buy it. But when the customer clicks the buy button, the purchase is carried out on the provider's website or online shop.

We'll explain this to you in more detail so that you can clearly see the process.

1. Who are the products you are going to sell by?

As with dropshipping, before starting a business, you should have carried out a market study and selected both the sector and the target customers.

Then you have to decide what you are going to sell. Here are a few options:

  • Selling a company's own products: There are no middlemen and the commission is paid directly by the company. This does not rule out the possibility of selling other products.
  • Affiliate platforms: These are websites that are used to contact companies or manufacturers who want third parties to offer their products. These platforms can be used to access products from different categories and price ranges. Below are some of the most popular affiliate platforms: ShareASale, Zanox o Comission Junction.
  • Affiliate programs: This is where Amazon stands out as the largest affiliate network par excellence. When you work with Amazon, you can recommend all of their products.

Choosing between these two options depends on many factors. But if it's your first experience with affiliate programs, then we recommend that you start with Amazon. There are 2 major advantages to this collaboration:

  • Amazon's customer support is very good.
  • The product range includes everything you can imagine.

The big disadvantage is the usually very low commissions. If you would like to know how high these are, click here.

2. How does the affiliate sale work?

Imagine you already have your online shop with affiliate products. It doesn't matter whether it's from Amazon, a platform or a company, they all use the same system.

A visitor likes a product and clicks the buy button. This button directs the customer to the online shop that sells this item at the end. Payment is also processed there.

This raises 2 questions:

  • How do you know this customer is from me?
  • When do I get my money?

The first question has a very simple answer: it works thanks to the links.These are special links for the buttons (with corresponding cookies). Thereby Companies learn where visitors come from.

When the payment will be processed is a little more difficult to answer, as each platform works slightly differently. Although it There are some that pay after 30 days, and there are others that take 60 days.

It is also important that you verify that you need a certain amount of sales in order to claim payment.

Dropshipping VS Affiliate Online Stores: Which Is Better?

Which of the 2 systems is better?

As always, this depends on the circumstances. But to make it easier for you to find out which one suits you better, we will explain below summarize the advantages and disadvantages of the two methods.

Advantages and disadvantages of dropshipping

Aside from the profit of selling on the internet without inventory, this system offers other interesting points.

ADVANTAGES

  1. No worries about storage, packaging or shipping.
  2. The provider will send you all the information you need.
  3. You only pay for items sold.
  4. They offer greater credibility and confidence.
  5. You determine the final price.

DISADVANTAGE

  1. They depend on how the dropshipper works.
  2. The profit margin is usually low.
  3. Sometimes the providers contact customers directly.

You can see that success or failure mainly depends on whether or not you can find a good provider.

Advantages and disadvantages of affiliate online shops

For many people the affiliate system is “perfect”, but you cannot trust that alone. As with all strategies, there is a downside to consider.

ADVANTAGES

  1. Aside from the fact that you don't have to worry about storage, packaging or shipping, you also don't need to handle payments.
  2. Technically even easier than dropshipping.
  3. With just one vendor, you can sell many different items.

DISADVANTAGE

  1. Since the payment process is processed on a different website, distrust arises.
  2. The online shop determines the final price.
  3. You have to wait for the payment.
  4. Very low commissions.

The big secret of affiliate programs is to build trust. There are thousands of online shops on the Internet with the same product range. Every little thing that doesn't convince the customer will get him to buy from the competition.

Are you ready to sell on the internet without stock?

Now that you have all the relevant information, there is only one thing left to do: make it a reality.

Conduct a market study, discover the products you want to sell and choose the sales system that best suits them.