Dropshipping as a tool to increase profits

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Dropshipping is a sales method in which an intermediary sells goods to a customer from a manufacturer. The product sends the manufacturer to the customer's address, and the intermediary receives a commission for the transaction. The dropshipper, or intermediary, sells the supplier's goods, but does not store them in his warehouse. This method of cooperation benefits all parties to the transaction. The manufacturer increases the sales of its goods, the intermediary can sell an expanded range of products without additional warehouse costs, the customer receives the necessary goods without additional difficulties.

According to a study from ResearchAndMarkets.com, the size of the dropshipping market reached 76.88 billion US dollars in 2021 and is projected to grow with an average annual growth rate of 6.93% and reach 107.86 billion US dollars by 2026. The main drivers of growth are the following factors:
- Increasing the availability of the Internet worldwide;
- Increase the number of mobile phones
- Increased investment in the e-commerce sector
- Growing demand for electronics

As the study shows, this is a very promising tool. Income from dropshipping can reach 10-100% of the transaction price. At the same time, the seller can place hundreds of such offers in his online store. In addition, it is not necessary to rent a warehouse, hire additional staff, build additional logistics.
From the experience of Fincraft Capital, we have derived the main criteria for selecting a partner for dropshipping:

- Product quality. This is the most significant factor for consumers. We evaluate the quality of each partner's products, request certificates, guarantees, and check the work of the quality control department.

- Processability. Because the good is sold through an online store, it is necessary for consumers to transfer the benefits of the good through visual images. If the supplier cannot provide high-quality content, this will make it difficult to sell online, consumers will have many questions that the seller will have to answer without the goods available. To avoid such situations, we evaluate the level of technicality of the supplier and allow only ready-to-work through the online format.

- Shipping options. No less important item is the delivery of goods to the door of the consumer. The supplier must cooperate with known delivery services such as DPS, DHL, TNT, FedEx. Or be able to independently organize delivery, and not transfer it to the shoulders of consumers.

- Terms of payment. This is one of the key factors that affects the quality of cooperation. Manufacturers can change the price of their goods once a month, while the dropshipper does not know about this fact until the order is received. As a result, in order not to spoil relations with the consumer, the dropshipper sells the goods at the old price and this leads to a decrease in commission payments. To avoid this, we only allow those suppliers who have the opportunity to unload the product stock to update information and prices within a few minutes.
We listed only the main criteria for qualitative evaluation. All our partners receive a rating of 80 criteria that avoid difficulties in their work. Join our affiliate network and you will have the opportunity to increase your profits.