Everyone wants to get involved in the mobile phone accessories market. For startups, dropshipping is a good choice. You can sell without storing the goods. Customers place orders, and you just need to contact suppliers to have them ship the goods. Sounds great? Want to know if dropshipping is really that friendly to mobile accessories wholesalers? VIDVIE will tell you in this article.
What is dropshipping and does it work?
Dropshipping is a simple sales model. Wholesalers only need to wholesale mobile accessories online, without having to deal with inventory and delivery. The specific method is that you publish mobile products in your online store, and customers place orders online. You forward the order to the supplier, including the customer address, quantity, product,and stuff like that. Then the supplier will directly pack and send it to your customer.
What is dropshipping and does it work?
Advantages of dropshipping wholesale mobile accessories
Low initial investment cost
Drop shipping does not require a lot of capital investment in the early stage, nor does it require bulk storage of products. It greatly reduces the cost of capital, makes it easy to enter the mobile phone accessories market, and has financial advantages in reasonably allocating funds.
Cut implicit cost
It greatly reduces indirect costs, such as monthly storage prices, inventory management fees, labour overhead, and shipping fees. It can indeed save a lot of costs.
Product diversity
Drop shipping can keep your product variety diverse, and you can even quickly select products based on the electronic accessories’ needs. Reduce your reliance on a single product type and release popular products anytime, anywhere. Quickly respond to the market without inventory restrictions.
Go global
You can cooperate with suppliers in various countries, and even choose suppliers in the local market. There is no need to handle complicated customs affairs, and you can also wholesale according to local charging specifications, and the delivery speed is faster.
Advantages of dropshipping wholesale mobile accessories
Dropshipping challenges
Quality control
You can’t quality-check every single item when the supplier handles shipping. Sometimes you’ll get dodgy chargers, battered packaging, or even the wrong brand entirely. When this happens, you’ll need to chat with your supplier to sort it out – and make sure you’ve got a plan for these situations before they happen.
Over-reliance on suppliers
The quality of suppliers largely determines the results of operations, whether there are delivery delays, whether there is enough inventory, and whether there are problems to solve. These problems often affect the store’s rating and brand reputation.
Reduced profit margins
Dropshipping might save you a packet on overheads, but here’s the point- it’ll shrink your profit margins too. Because the supplier’s price already bundles in the product cost, delivery fees, and their cut. That means you’ve got to sell at a higher price than they charge you just to make a profit.
With fierce competition on basics like chargers and phone cases, you’re often forced to slash prices just to stay competitive. Plus, since you’re products are as-needed, you miss out on those proper bulk-buy discounts that come with bigger orders.
Returns problem
On Dropshipping, if your products come from suppliers, the return process depends on your suppliers. You need to generate an RMA authorisation form and ship the products back to the supplier. If the supplier’s address is not within the supported shipping range, additional shipping costs may be added.
5-Step Problem-Solving Process
Do your homework on suppliers. Check the production process if possible, get product samples, and test product durability and details. Analyse the supplier’s industry reputation, delivery timeliness, and professionalism.
Communicate with suppliers in a timely manner, clarify wholesalers’ packaging preferences and quality expectations, and establish good cooperative relationships.
Pricing strategy.Balance between staying competitive and actually making money. Consider shipping costs, market demand, and improving profit margins. We’ve already done a deep analysis on wholesale pricing – give that a read if you need pointers!
Customer service is key – you’ve got to set up proper ways for customers to reach you, jump on queries quickly and smartly, sort out any issues, and keep them updated on their orders in real-time.
Closely following mobile accessories trends – Stay abreast of the pulse by checking trade magazines, industry news, and what’s blowing up on social media. That way, you can adjust the lineup to match what customers actually want, before they’ve even asked for it.
Conclusion
Is dropshipping a good wholesale mobile accessories model? Yes, it is good for starters, but you need to consider your situation.VIDVIE’s keeping you plugged into all the latest mobile accessory trends – don’t miss out, stay tuned for our updates!