With the increase in online retail sales and the use of SMART technology to buy goods through Apps and e-commerce websites, more and more businesses are looking at ways in which to streamline how they sell goods over the internet.

The likes of Amazon have demonstrated that for some companies, using fulfilment is a successful method to sell well-known brands at a competitive price.

Drop-shipping opens up avenues as to how goods are marketed, stored and dispatched.

At a fairly low-start cost, drop-shipping enables businesses to sell thousands of products from the beginning and allows them to focus on building their brand.  So how does this work for any regular online business?

Understanding what drop-shipping is!
Basically to drop-ship means that you choose the brands that you want to sell through your e-commerce platform, but you don’t store them on your premises. Instead, you partner with a wholesaler or drop-shipper who is known to store the brand you are selling and then when you receive an order, you let them know and then they will send out the order on your behalf, using your own label and return address.  This means that your customer never knows that a third-party company has been involved in the dispatch process.


How to find a reputable drop-shipper
Once you have decided on the products that you want to sell, it is best to approach the manufacturer that can advise on qualified distributors and who will then drop-ship on your behalf. Be careful to validate who the companies are and request legal credentials before making any transactions with them to ensure you are dealing with reputable firms.


Finding a niche product
Finding the right products to sell is essential. In such a competitive market this can be quite daunting; however, finding a product that excites you – whether it’s a hobby or a personal interest, is a good start. Subsequently, writing about that product in blogs and across social media is a great opportunity for promoting the business.

For information on drop-shipping and our resources relating to online retail please contact our advisors at Crendon Insurance Ltd. We support online retail businesses across the UK who are looking to sell nationally and internationally with online retail insurance.

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