Different Stages of Dropshipping Business

Here we present you the blueprint of dropshipping business. We’ve broken down the dropshipping business into 5 stages. Take a look at them and you’ll know where you are in the journey of dropshipping and where you are heading for.

The different stages of dropshipping

Stage 1 Beginner: Dropshipping Existing Products

Everyone starts from here. Most of them find themselves stuck at the early stages wondering if dropshipping is dead. As a beginner, you test with the existing products in the marketplace with the aim to find your best-selling product.

Estimated Daily Order:

0-9 orders for the best-selling product
Stage 1 Beginner

Strength

  • Low Investment:

The dropshipping model doesn’t require upfront investment in inventory, allowing you to run the business with minimum funds.

  • No Risk

You are nearly risk-free as you are not tied up by any inventory.

Challenge

  • Lack of Uniqueness:

Look at the popular products on Aliexpress. The popularity of them also means fierce competition. It’s hard to earn your share of the market when you are selling products that are no different than any others.

  • No Control Over the Inventory:

The supplier may run out of stock while you’ve got orders from your customers.

  • Long Processing Time:

The processing time is subjected to the supplier’s inventory level and processing capability, which is between 3 to 5 days on average. It takes that much time to verify your order information and get the products ready before shipping.

Real-Life Customer Experience

You placed an order and left message for the Aliexpress supplier: Please blindly dropship this item. When your customer receives the parcel, the exact message turns out printed on the tracking label!

Stage 2 Start-up: Dropshipping with Pre-stocked Inventory

You are getting consistent sales now through proper marketing strategies. Cash starts flowing. You are looking for solution to the inventory issue to improve customer experience. Now you are able to cover the costs of holding inventory for your best-selling product.

Estimated Daily Order:

10-49 orders for the best-selling product
Stage 2 Start-up

Strength

  • Optimized Processing Time:

With your personal inventory, processing time is greatly reduced.

  • Awareness of Stock Status:

You are clear about how many products are available to fulfill your orders. You have no concern for suppliers running out of stock.

Challenge

  • Increased Risk:

You’ve paid upfront for the inventory so you feel obliged to get your inventory sold.

Real-Life Customer Experience

Your customer opens the package and sees there are Chinese characters on the product packaging.

Stage 3 Pro: Dropshipping with Custom Packaging, from Local to Local

You’ve gained a lot of experience in marketing; your cash flow is improving and you are enjoying steady sales. Now you are at the point to scale your business. To attract more customers and keep them happy, you offer fast delivery by shipping from the local where your customers are situated. To distinguish yourself from your competitors, you invest more in custom packaging that speaks of your brand.

Estimated Daily Order:

50-100 orders for the best-selling product
best dropshipping products

Strength

  • Brand Presence:

A nice customized packaging with your logo and design helps a lot with the brand presence. You are easier to be identified by your customers now.

  • Fast Shipping:

Shipping has never been this simple and fast since you start working with a local supplier or a supplier who has a local warehouse that is near to your customers.

Challenge

  • Lack of Uniqueness:

Although you’ve improved the presence of the package, you can’t solve this problem completely until you have the ability to improve the actual product which matters the most to your customers.

  • Growing competition:

As your business is growing and you are seen by more and more customers, there are more and more competitors who are monitoring your every move. You have to make continuous efforts to maintain competitive.

Stage 4 The One: Dropshipping Customized Products

You’ve carved a place for yourself in the market. You feel the urge to offer more value to your customers by improving the products and you are financially ready for it. It’s time to build your brand.

Estimated Daily Order:

100+ orders for the best-selling product
Stage 4 The One

Strength

  • More Control Over the Product:

By customizing your product, you get more control over the product. You finally get the chance to modify the product to fix the pain points of your customers.

  • Originality:

You become the one that customers will first think of when they decide to buy by means of providing products tailored to their true needs.

Challenge

  • Finding the Right Factory:

It takes time and energy to find the right factory that understands your needs and can meet your requirements.

  • High Involvement Required:

You need to be more active in maintaining good communication with the factory to follow up the production.

  • Cash Flow Issue:

The bigger your business grows the more working capital you need. When you have trouble with the cash flow, your nightmare starts: Suppliers suspend the shipment until receiving your payments→Shipping gets delayed→Annoyed customers give bad reviews on social media and open disputes→Your sales fell and your funds get frozen on PayPal→You have no money to pay your suppliers. If you can’t stop the vicious cycle, soon your business will die.

Stage 5 Our Partner: Long-term Partnership with NicheDropshipping

It takes time to foster trust. Once our partnership is proved beneficial to both of us, let us relieve your stress of cash flow: you pay 30% deposit to us to enjoy a large quantity of inventory stocked in our warehouse that is ready to ship. We’ll take care of inventory management, follow up the production with the factory, apply serious quality control and make more efforts to improve the supply chain.

Stage 5 Our Partner
And there is a more flexible solution we are developing to further improve the financial agility of our valuable clients.

Plan

Beginner

For Beginner
39
99
每月
  • Free Sourcing Service
  • Free Storage
  • Quality Inspection
  • Multiple Shipping Methods
  • Personal Support Agent
  • Purchasing and Shipping for You
  • 2-5 Days Processing Time

Startup

For Start-up
  • Free Sourcing Service
  • Free Storage
  • Quality Inspection
  • Multiple Shipping Methods
  • Personal Support Agent
  • Pre-stocked Inventory in Our
             Chinese Warehouses
  • 1-2 Days Processing Time

Ready to Scale

For Pro
39
99
每月
  • Free Sourcing Service
  • Free Storage
  • Quality Inspection
  • Multiple Shipping Methods
  • Personal Support Agent
  • Pre-stocked Inventory in Our US
             warehouses
  • 3-5 Days Delivery Time to the US
  • Custom Packaging Tailored to
             Your Needs

Build Your Brand

For the One
39
99
每月
  • Free Sourcing Service
  • Free Storage
  • Quality Inspection
  • Multiple Shipping Methods
  • Personal Support Agent
  • Finding the Right Factory for You
  • Making Your Own Products
  • Building Your Dream Brand

Source Your Products and Start Dropshipping

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