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Logistics
The guide to excelling in e-commerce shipping!
1. Transport and delivery of your package: deliver products and improve your image!
Delivery is one of the crucial steps in the logistics of an e-commerce business as it is the very last thing that customers face before making a purchase and receiving their product.
And if losing a customer due to a bad delivery experience is one thing, the impact can be even greater on your bottom line. In fact, 28% of internet users who have suffered inconvenience following the delivery of a product talk about it around them. And word-of-mouth can cost the reputation of an e-commerce business!
So how to deliver? And where to? Should we export? How to manage returns? So many questions that are essential to develop a good shipping system!
2. An efficient and clear delivery process
As an e-commerce business, it is important not to leave anything to chance regarding your entire delivery process. The idea is to leave no doubt in the minds of your customers, so that they feel sufficiently supported to order on your site without any fear. And there are a number of important aspects to the clarity of the delivery process.
First of all, it's best if your shipping and return terms are crystal clear. Describe them in detail on your site and try to contextualize certain situations. For example, if you sell organic cosmetics, detail your shipping and return policy. Delivery times, refusal of refund if the product has been used... Be exhaustive!
It is also preferable to offer a wide range of delivery options. At home, at a drop-off point, by appointment... 84% of internet users say they are ready to change their site if they don't find a delivery option that suits their needs. Success lies in diversity!
Adaptability is also one of the sine qua non conditions for a successful delivery service, particularly when it comes to packaging. Indeed, more and more customers do not hesitate to express themselves on social networks if the packaging sent is not adapted to the product. Between over packaging and shipping small products in large boxes, the brand image of some e-commerce takes a heavy blow! So, don't hesitate to design a whole range of different packaging, in order to adapt them as well as possible to the products you send.
Bigblue Tips
Try to be as transparent as possible with your customers to avoid any disputes. The idea is quite simple, but nevertheless essential:the more you can be sure of your customer's interests by accurately describing the shipping conditions, the less likely you are to get justified complaints if you don't provide them with the right information. Not to mention the fact that 98% of internet users want to reorder from a site if the delivery went well!
There are many little tips to improve your delivery process on a daily basis. Don't miss a chance to boost your customer base!
3. Choosing the right parcel delivery service
Once your shipping policy is set, then comes the choice of delivery services. If you want to create a community and satisfy all your customers, it is essential to offer a variety of delivery options. Again, diversity is the key to success!
Obviously, it is prudent to offer "classic"delivery services. Nearly 58% of orders placed on the internet recommend home delivery which is particularly popular with online shoppers. Finding an organic day cream ordered on the doorstep is priceless! As a more pragmatic and more environmentally friendly approach, don't forget the delivery at a delivery point-the second most popular option for consumers.
You can also stand out from your direct competitors by offering more innovative delivery services. Nearly 85% of internet users would like to see more express and appointment delivery appear on e-commerce sites.These options allow your customers to order an organic cosmetic from your catalogue and receive it when they want it. Whether within the hour or within a selected time slot, carriers offering such services generally operate locally-customer satisfaction and reduced risk of absence.
It is good to know that if you choose to use a carrier on a regular basis, you offer yourself the right to renegotiate fares to obtain discounts. This will show on the total price of the delivery and will be appreciated by your customers!
Bigblue Tips
When selecting your delivery services, the idea is to think about what your customers prefer. But not only that! We also advise you to think about what's best for your e-commerce based on your monthly shipments and the structure of your business.
Choosing the right delivery service can lead to many savings!
4. Have a package delivered abroad
Exporting your products abroad is good news for your e-commerce! It marks the progress and development of your business. However, it is not quite as simple as that. Making deliveries in France and abroad does not involve the same questions. In order to make sure you don't plant your business abroad, it is essential to answer certain questions.
First of all, regardless of your delivery service and the carrier chosen for your deliveries in France, your choice may be different abroad. If you wish to export your organic cosmetics to Germany for example (a country where returns are particularly numerous), your choice of logistics partner will not necessarily be the same. Make sure you adapt your carrier according to the destination country you are targeting.
Likewise, depending on the country of export, you may have to look into the calculation of the costs incurred for your shipments. Customs duties, storage charges, 10% VAT and postage vary between borders and exporting to certain countries may not be worth it financially.
It is also best to find out about the laws in force in the destination country. Some products (such as medicines or jewelry) are not allowed across certain borders. Perhaps your cosmetic products will not be accepted?
Finally, if you wish to ensure the success of your establishment in a foreign market, it may be worthwhile to carry out a competitive intelligence. Find out about the expectations of local customers and adapt your offer to what pleases the most! Observe your competition and the practices anchored in the customs of the destination country.
Bigblue Tips
To make sure that you don't make any mistakes when choosing a carrier for your destination country, you can call on a logistician who is familiar with international regulations, such as Bigblue for example. Delegating delivery to a logistician allows you to minimize the risk of complaints (95% of which concern delivery and after-sales service) and product returns.
Exporting abroad is one thing, but success is another! Make sure you have your back covered, by asking for information beforehand.
5. Conquering the Swiss market
Of all the international markets, the Swiss market is particularly interesting for French e-commerce. Indeed, it is a country where French is spoken, and where the population tends to order a lot online(e-commerce grew by 53% from 2012 to 2017). That said, it is also a country where regulations are quite different. And its successful implementation requires certain precautions!
For example, customs fees vary greatly, and shipment to Switzerland requires particularly rigorous official declarations. It is therefore important to find out more about the subject, at the risk of not seeing your cosmetics arrive at their destination.
From a more technical point of view, it is also more prudent to adapt your website to the requirements of the Swiss population.Between the languages spoken and the currency used for payment, every detail counts so as not to discourage a customer's attraction to your organic beauty cream!
Once you have done your research, we advise you to be 100% transparent with your Swiss customers. The delivery time may be extended, and additional taxes may be applied for any product shipment withinSwitzerland. And if your customers buy on your e-commerce site, it is important that they do so with full knowledge of the facts.
Bigblue Tips
Exporting e-commerce to Switzerland is quite unique, not least because the constraints vary from region to region. Whether it's the official language or the currency used, the place of delivery can make a big difference. You have to be extra careful!
There are many specificities linked to e-commerce delivery in Switzerland. But it's all a question of knowing what you're getting into! Make sure you find out about these intricacies to avoid any risk.
6. Successful parcel shipment, without neglecting product returns
The logistic work of an e-commerce does not stop at the delivery: it is also necessary to think about product returns in case of a problem. And to attract more and more customers and stand out from the crowd, your return policy must be concrete! Clear, flexible but always competitive, return policies are not to be taken lightly. To make sure you create a flawless return policy, it is preferable to facilitate customer returns without provoking them.
To begin with, make sure you write your return conditions in such a way that there is no room for doubt. For example, you can dedicate an entire page of your e-commerce site to explaining returns, or even set up an FAQ that answers all the most frequently asked questions.
At the time of shipment, you can adapt the choice of your packaging not only to the product, but also to the return! If one of your customers orders a deodorant alum stone from your catalogue, make sure to ship it in a re-sealable cardboard box so that it can be reused in case of return. In addition to being positive for the planet, your customers will appreciate the gesture.
In order to minimize the risk of forgetting or making a mistake, you can outsource the entire return part of your logistics. Many specialized logisticians can take care of it and act as an intermediary between you and your customers. Whether it is for the return or refund deadlines, the addresses to which to send the parcel... A long-term investment for minimizing errors!
Bigblue Tips
Whether it's delivery or return of your products, always think about what you can do to make life easier for your customers. Don't hesitate to create real-time alerts for the progress of the package delivery or return. Transparency is the mother of safety!
Returns are an essential element of e-commerce logistics and it should not be neglected. As with delivery, there are many details to take into account, and many pitfalls to avoid. But it's all a matter of preparation!
7. How to make a success of your parcel delivery as an e-commerce?
There are many different and varied tips to achieve success in e-commerce shipping, both for delivery and returns. But this requires a great deal of research upstream.
As an e-commerce merchant, it is best to find out about the best carriers to select, the countries to set up, and the delivery options that appeal, in order to work methodically on your delivery and return policy.
Having a concrete delivery process will not only bring you new customers, it will also help you build customer loyalty and an attractive reputation. So, don't neglect this point of your logistics: work on it!
Logistics
How to design the perfect return policy?
1. How to manage returns and reshipment of ordered products?
Whether it is accessing information on the brand's website, trying to get your head around the return policy, or tracking your returned package—everyone has been confronted with a difficult product return experience.
But as an e-merchant it is important to keep in mind that 20% of customers do not finalize their order if the return policy is not clear or if it is not satisfactory. And 20% of your buyers, that's not nothing!
It is therefore possible and even preferable to improve the customer experience as much as possible at all levels. Between the writing of the return policy, its implementation and customer support, you have plenty to do.
2. Return policies: simplicity and customer service
About 55% of internet users have abandoned a purchase because the return policies were not clear enough. Writing return policies is not to be taken lightly! From mandatory clauses to the right wording, here are some tips for writing your return policies.
Legal and mandatory rules for all orders and returns
Between the cooling-off period and the implementation of returns, return policies are governed quite strictly by law. Take your time to understand them!
What is the withdrawal period?
When a customer buys a product online, it is called a "distance selling". However, for online sales, the law provides a withdrawal period of 14 days as a basic principle and it is open to each customer.
During these 14 days, the customer is completely free to change his mind about his purchase and return the purchased product to you. He is then not obliged to justify his decision to withdraw.
When retracting, the customer must:
- Notify you of his decision within 14 days of receipt of the goods.
- Return the product to you within 14 days of declaring it.
How to implement returns?
The customer must also be informed of the possibility of retraction before he proceeds with the purchase. It is therefore necessary to provide a return policy which the customer can easily take note of.
This return policy is very important! Indeed, if you do not clearly inform your customer about his right of withdrawal, then the customer has an additional period of one year to return the goods.
If a customer decides to return the product to you, you have the obligation to reimburse it. This refund must include all expenses incurred by the customer during the purchase. In other words, you will have to reimburse the price of the goods as well as the shipping costs related to its delivery.
However, it is possible to make the customer responsible for paying the return shipping costs. But beware! In this case, the customer must be warned before his purchase that he will have to pay these costs himself. If the return policy does not contain this information, you will have to pay the return costs yourself.
Please note: as soon as you receive the goods, you have 14 days to make this refund. In the event of a late refund, the amount of the refund will be increased by:
- 10% for a delay of less than 30 days;
- 20% for a delay of between 30 and 60 days;
- 50% for a delay of more than 60 days;
Exclusion of returns
Nevertheless, for certain goods, the right of withdrawal is excluded. This is the case when:
- The goods have been personalized for the consumer;
- For reasons of hygiene or health protection, the goods may not be resold to another customer;
- It is unsealed or customer-installed computer software.
However, where the right of withdrawal is excluded, you must indicate this in your privacy policy.
Bigblue tips: Do you still have questions about your return policy? Not sure how to write it? If so, online legal services such as Avostart can put you in touch with a specialist lawyer quickly, so that you can find answers to all your questions.
3. Make returns and serve your brand image
Beyond their purely legal dimension, return conditions are a very powerful marketing tool, as 95% of internet users recommend a brand if the return of products has been facilitated.
In other words, if the customer feels understood and has the right to change his mind, and that the refund procedure is fast, he will be less hesitant to go ahead with his purchase on your e-commerce site. For example, if a customer wants to order a mug for Father's Day, and your return policies are clear and accommodating, not only will he go through the checkout process more easily, but he will also talk about it to those around him!
So, increase sales and improve your brand image. Two reasons not to skimp on writing your return policy! To be optimal, your return conditions must be clear, flexible, and competitive.
Clearly stated conditions
72% of consumers say they would buy more online if the return procedure was simpler and more accessible. To make your return policy a marketing lever, we therefore advise you to use a vocabulary that is accessible to everyone.
It is also important to answer the simplest questions, those that all consumers ask themselves: return deadlines, possible exchanges, product return steps, refund period, tracking email to notify the customer of the progress of the return...
Keep it simple and concise. A few sentences should be enough to provide your client with the answer they're looking for.
Flexibility of returns
Customers greatly appreciate the adjustment of returns according to the period. For example, during Black Friday or the Christmas period, perhaps it makes sense to extend the originally planned return period by 14 days.
For example, ready-to-wear brand Headict allows 14 days for a refund, and up to 30 days for a credit note or exchange. Even more concretely, Zalando extended their return period to 100 days during the Covid health crisis. So, if you sell mugs for Father's Day, you can increase your return period 3 weeks before the event, to facilitate any exchanges or refunds.
A competitive policy
Standing out is always good for your e-commerce. And with a competitive returns policy, you will attract a lot of customers and increase your conversion rate!
Here again, it is a question of adapting according to circumstances and periods. For example, you can set up a system of free returns in the weeks leading up to Father's Day. If you do this and extend the return period, your personalized mugs will sell like hotcakes!
Bigblue tips: 60% of buyers prefer a purely automated process so they can schedule their returns on their own. To satisfy them, be sure to describe the return procedures precisely and set up automatic return forms!
4. The implementation of tools to enable the return of purchased products
1 product out of 4 sold online is returned, compared to just 10% of goods in traditional trade. To satisfy your customers, in addition to tackling the theoretical dimension of your return policy, you need to put in place tools for its practical application.
Improving the process internally
As an e-commerce owner, you have many tools at your disposal to facilitate returns. They are more or less simple to set up, you just have to choose the ones that suit you!
The creation of a return form
As stated, consumers like to handle product returns from A to Z. From this point of view, it is therefore a good idea to create an automated and easy to fill out return form.
Plan to ask questions about the whys and hows of the return in order to improve and solve this problem in the future. You can even turn this form into a conversion channel. For example, if your customer bought a mug for Father's Day but it's too small, you could offer them a range of larger mugs.
A well-written return form can increase your conversion rate: you might as well take advantage of product returns!
The creation of a page dedicated to returns
Information is the key to successful e-commerce. So, make sure you create a page on your e-commerce site entirely dedicated to returns and their conditions. For example, you can list the different stages of the return, and even schematize them! The better your customers can visualize the steps, the better your communication will be.
You can even include an FAQ about returns to answer your buyers' questions efficiently and concisely.
For even more originality and personalization, it is even possible to communicate these steps in a physical way! In the package containing the Father's Day mug, you can, for example, slip a flyer, which lists and illustrates all the return steps.
The conception of an adapted packaging
50% of 18 to 24-year-olds buy on the internet with a view of returning certain products. Both for your image and for the respect of the environment, it makes sense to design reusable packaging for returns.
Therefore, it is preferable to send your products in a box that can be closed and used for the return of your products. This will prevent your buyers from returning their products in old boxes from an old order which may be much too large for the product. This practice is not very good for the environment.
Setting up a tracking system
As with delivery, it is important to remember to inform your customers of the progress of their return. If you have read our article on the 9 do's and don'ts of delivery, you already know that customers are reassured when they are informed in real time.
You can therefore set up a parcel tracking system so that they can follow the progress of their return live. Applications such as 17track exist to track your parcels, without going through the carriers' sites (in France and abroad).Simple to set up, and ideal to make life easier for your customers!
Attach the return label when sending the goods.
This possibility is not really unanimously accepted by e-merchants, because it is a double-edged sword. Some brands (especially fast fashion brands)include the return label in the parcel sent. This makes the return procedure easier in case of a problem: no need to print the slip, just stick it on the parcel.
However, attaching the label can be a false good idea. Indeed, for a return to be handled by the distributor, both the transport label AND the return slip are required. So even if you include the return slip in the package of your mug, your customer will have to print the shipping label (specifying what's in the package, the value of the mug, addresses, etc.). If he doesn't read the return conditions correctly, he won't think about it: this will lead to logistical problems and delays. So, attaching the return label is not just a good idea!
Don't forget that the presence of the return slip plays a decisive role in the return of a product. Not attaching it can therefore help to limit returns, at the very least not to encourage them.
The inclusion of the return price
Again, this is a double-edged sword. Nearly 80% of consumers want a free return: such a policy therefore makes it possible to satisfy the majority of your customers.
That said, it greatly encourages returns. Even the slightest doubt about a product will make consumers likely to return it. This can also lead to abusive returns: when an internet user buys several items (several sizes of jeans, for example), with a view of returning some of them. And this is not good for your stock and logistics, nor for the environment!
Some e-commerce brands have therefore found a happy medium: in France, returning a product is free, but the second one has to be paid for.
Bigblue tips: By setting up a FAQ, you reduce the number of repetitive customer interactions, and you give yourself the opportunity to improve your logistics and marketing. Investigate the reasons for returns and the questions asked, and adapt your e-commerce site to what you find!
For example, when writing your product sheets: 22% of returns are linked to the product image not accurately reflecting the product advertized. By analyzing the problems according to the products, you will increase your awareness of ways to improve your e-commerce.
Optimizing returns through outsourcing
When facilitating your return policy, you are not obliged to do everything yourself. You can outsource the whole logistical part.
Collaboration with specialized partners
Some professionals have become experts in the field of product returns.Companies like Shoprunback, Return Magic and Revers.io can take over your reverse logistics, to take the weight off your shoulders.
Their job is to automate returns and to be an intermediary between you and your customers. And when you consider that the average return time in France is 22 days, it may not be a bad idea to bank on speed!
Using the services of a logistician
Depending on the logistician you work with, the difference can be quite significant in terms of returns.
Some logisticians, such as Bigblue for example, take care of all reverse logistics, from returns to shipping. They take care of the entire logistics process and notify your e-commerce and customers in real time of the progress of their returns.
Bigblue tips: 5% customer loyalty can increase your profits between 25% and 55%. Whether by word of mouth or by reordering from you, customer service plays a huge role in retaining your customers! Investing in the outsourcing of returns management can therefore become beneficial for your turnover in the long term, provided you use the right logistics specialist.
5. The proper management of returned products, at the service of your turnover!
As an e-commerce brand, it is possible to improve your returns process on different scales, depending on your opportunities for development. The ultimate goal is to optimize your customers' experience, and at the same time, your brand image.
To achieve this, you can improve the way you write your return policy, focusing on clarity and flexibility in order to stand out from the crowd. It is also advisable to dedicate an entire page of your e-commerce site to return policies to help your customers to see clearly and place orders with full knowledge of the facts.
If these options are complicated to set up on your scale or if you want to delegate the reverse logistics to a professional, you can outsource this service by calling in a specialist logistician.
The work of an e-merchant doesn't stop at the delivery of a product-you have to look further, and put yourself in the shoes of your buyers, from A to Z. What is the ideal service for your customers?
Logistics
The Truth about Dropshipping!
Between delivery times, competition, and logistical dependence on the supplier, dropshipping can be more complicated than it seems.Before embarking on this venture, it is therefore prudent to weigh up the pros and cons.
Advantages and disadvantages of dropshipping
Dropshipping is a very advantageous business model to start up at the very beginning of an activity. Indeed, access to the dropshipping market is facilitated by the numerous platforms and is almost completely free of charge.
It is only once dropshippers have their foot in the door that they become aware of some practical drawbacks. Between the financial aspect, the interdependent relationship with the dropshipping supplier, the competition, and the logistics, dropshipping is not the goldmine you expect it to be. And before taking the plunge it's a good idea to know all the ins and outs.
The financial aspect: advantageous or costly?
The first aspect to take into account before jumping into the lion's den: the financial aspect. If dropshipping is not profitable for X or Y reason, perhaps we should reconsider the question?
The advantages
At first glance, dropshipping is clearly a plus for easing into the e-commerce scene. Whether you choose to set up a dropshipping website, or go through a dropshipping platform, the initial investment costs will be low.
The creation of a website is made easier by the existence of many CMS whose prices are very low.
Moreover, according to the dropshopping principle, the dropshipper (and therefore you) has no land, equipment, or stock costs to bearthe burden of: this is the responsibility of the provider you have chosen!
Between the absence of payment for the production chain, packaging design, and delivery, the financial difference in expenses compared to traditional e-commerce is substantial.
Not to mention the fact that a dropshipping e-commerce has a higher scalability than a traditional e-commerce! Let's imagine you are working with a supplier who produces UV machines for nail polish application. During the Christmas period, you receive a lot of orders for this UV machine. If you were a normal e-commerce company, you would be out of stock. With dropshipping, suppliers produce in bulk which means no downtime!
The disadvantages
But all is not rosy in the financial world of dropshipping. Indeed, not incurring storage and delivery costs has a fairly significant impact on your margin per order.
To buy a UV nail machine, your customer pays for his product on your site. Once you have received the money from your customer, you place the order yourself with your supplier. So even if you don't need to advance cash, since you are only an intermediary, the margin is less.
Having said that, it is not because your action is minimal that your involvement is also minimal, since it is the seller (you) who is responsible for the 2-year legal guarantee following receipt of a product.
In the same way, when the customer pays, all costs must be included in the general price list. So, for intra-community trade, you must apply the intra-community VAT at the right rate, without making any mistakes. If you don't do this, you run the risk of having to pay a hefty fine!
Bigblue tips: If you're just starting out on the e-commerce scene, dropshipping can be interesting. Nevertheless, since margins are eaten up compared to traditional e-commerce, it's important to make sure the cost/benefit balance is on the right side.
Logistics management: delegation or unavoidable weight?
The second attractive aspect of dropshipping: the logistical dimension, which is very minimal compared to online shops.
The advantages
Since your supplier takes care of production and delivery, you are not in charge of carrier management or packaging.
And although it may sound simple, not being in charge of logistics is a major thorn in the side of many e-merchants! Indeed, the choice of carriers, the palletization, the organization of the rounds... All this can quickly turn into a nightmare, especially if you are just starting out in the trade.
The disadvantages
But as every advantage comes with a disadvantage, the logistics of a dropshipping activity is not that simple to manage!
According to the principles of dropshipping, you are only responsible for the transmission of the order. This means that you have no control over the presentation and condition of the packages. However, if there is a problem during delivery or reception, your customer will contact you directly. If your supplier has a UV coating machine delivered in a dented and damp package, YOU are in charge of the after-sales service, even if you are not the cause of the problem!
And when you see that almost 20% of the products ordered in France are returned to the warehouse, you quickly realize that there is indeed a huge element of logistics management in dropshipping. Not to mention the fact that in the event of a product return, they are sent directly back to you. This means you can still end up with a stock on your hands!
Moreover, you have no control over delivery times. Asa general rule, dropshipping deliveries take between 15 days and 1 month (and with COVID, it's getting worse and worse!). However, 72% of French people want next day delivery, which does not necessarily fit with the constraints of dropshipping.
Finally, forget the small gestures and personalization towards your customers: you don't have access to the parcels! So, you can't put 1 small flyer here, 2 or 3 advertising pens there... Personalization is very limited.
Bigblue tips: Some dropshippers have problems with their suppliers.To prevent this from happening to you, you can directly delegate the logistics management to a logistician who is familiar with this. This way, the 10% return margin is handled professionally, and you always have a say.
Working with a wholesaler: freedom or constraint?
Every dropshipper works in collaboration with a supplier, whether he is a generalist or a specialist in a product area, such as nail cosmetics for example. Dropshipping is a service to both parties: the supplier sells its products without having to focus on marketing, and the dropshipper gets a commission without having to worry about production and logistics. It's a win-win situation!
But like any business relationship, it comes with advantages and disadvantages.
The advantages
The most important thing about working hand in hand with a supplier is that you don't have to worry about the production, logistics, and delivery of your products. Knowing that you are interested in e-commerce, and that the core business of commerce is... selling! And not production.
This way, you can concentrate solely and fully on the work of your brand image, and on the marketing dimension of your e-commerce site. Optimization of your UV machine product sheets, traffic acquisition, customer retention, loyalty building... All this without having to worry about the purely technical side of production.
Disadvantages
In theory, being able to count on someone in a business relationship is very positive: dropshipping is therefore a good exchange of good practices which should go well. In practice, suppliers tend to lead the way.
The number of dropshippers has exploded in recent years. As a result, there are more dropshippers than suppliers. Some wholesalers (in particular the larger ones in the market) therefore tend to impose rather strict guidelines on their dropshippers. And failure to comply with these guidelines can lead to the termination of your contract.
They have full control over the selected carriers(although you may be more familiar with local carriers), packaging, and price variations. This means they have control over the goods. Basically, even if you spend 3 months writing product sheets for an entire category of UV lamp machines, your supplier can choose at any time to change the color of the product, or simply to stop selling it. And for you, you end up with 3 months of work lost!
To overcome this kind of problem, you can work with several suppliers. This would allow you to expand your product catalogue on your website. That said, it also means that if your customer orders a UV nail machine and a weather station, they may not receive them in the same package. An order can centralize different suppliers, and they may arrive at different times. This is not good for your image!
Bigblue tips: In the supplier-dropshipper relationship, communication is the key to success. Make sure you maintain a good rapport with your wholesaler, and you will be aware of any changes!
Competition: an open or closed market?
The final point to consider before going into dropshipping, and not the least is competition! As mentioned above, there are more and more people getting into dropshipping. This allows the market to turn at a crazy speed! Subsequently, however, this also makes it more complicated to access.
The advantages
More and more dropshippers are going into business, all hoping to prosper. But they all buy from the same wholesalers! This means that your competitors have nothing more than you have: they sell the same thing. So, to stand out, you can throw yourself body and soul into working on your brand image and the marketing dimension!
In addition, you can analyze your competition to see what customers like, what they buy most, and the most flourishing formulations, etc. In short, dropshipping allows you to enter a new market with full knowledge of the facts, instead of running in blind. All this without investing a penny!
If you choose to do dropshipping in a niche market, you can add other products little by little, and study the reception of your customers. Ideal for anticipating your future catalogues!
The disadvantages
The fact that your competitors are on the same level as you can be a positive thing. But it also means that your products are no more special than theirs. This can make it difficult to find your place in an already crowded market.
You can of course turn to dropshipping platforms which make on average 10% more turnover than a simple dropshipping site. But the competition on marketplaces is even tougher than on the net! Standing out from the crowd therefore implies a certain amount of work.
Bigblue tips: Dropshipping is an ideal business model to start a business or a market. But it's only afterwards that things get more complicated. So why not take advantage of the advantages without suffering the disadvantages?
You can enter the e-commerce market thanks to dropshipping, then once you have your dropshipping business installed, you can then take over part of your production. The right balance between e-commerce and dropshipping, an explosive cocktail of success!
Do you want to give e-commerce dropshipping a try?
Dropshipping is a real springboard within e-commerce.Unlike e-merchants, dropshippers have no stock, delivery, or e-commerce logistics to manage. They therefore do not suffer any indirect losses, whether they are financial or time related.
Having said that, dropshipping is far from a perfect business model: it has many disadvantages, which can really slow down commercial activity. No matter what you expect from dropshipping and your status in e-commerce, it is important to consider the advantages AND disadvantages before jumping into the deep end!
E-commerce trends
Making millions through dropshipping: dream or reality?
Many dropshippers and dropshipping trainers claim to make sales worthy of the biggest millionaires. But in France, as elsewhere in the world, the turnover of dropshipping seems to remain lower than that of traditional e-commerce.
So, is dropshipping more than just a springboard into the world of e-commerce?
1. Before starting dropshipping: what are the costs involved?
In theory, dropshipping means you don't have to bear the costs of logistics, stock management, delivery, etc.
However, in the reality of its application, dropshipping can be costly in other respects, including:
- The management of the online shop or the account on an e-commerce platform
- Advertising on social networks
- The boost of a too-low conversion rate
If you are hesitant about dropshipping the outcome can be simple: if the total amount of commissions you collect is less than or equal to your business expenses, then no. Dropshipping is not going to be profitable for you.
In reality, dropshipping is not as simple as some dropshippers claim. Before you start, or in order to take stock of your business, it may be essential to take a close look at all your expenses and income to find out whether dropshipping will really be profitable. Not sure where to start? That's what we're here for!
2. Create a dropshipping website
What attracts entrepreneurs to dropshipping the most is the freedom from logistical burdens. With that said, dropshipping still requires a small investment.
Let's take the hypothesis that you want to sell one of the flagship dropshipping products in 2019: a pocket translator, that small electronic object that translates instantly, without an internet connection. Todo so, you need a place to sell it, an attractive spot.
The creation of a shop website on the internet
From the very beginning of your business, you can invest in the creation of a dropshipping e-commerce shop in your name.
Today, creating an e-commerce site can take only a few hours and cost a small amount of money. You will probably have to pay a few dozen euros to get one of the best web hosting providers.
You can directly go through Shopify, the king of dropshipping, which is a fully automated site, to guide you in the creation of a site that suits you. All you have to do is pay a subscription fee and follow the steps by selecting the backgrounds and themes that best suit your brand image!
There are many themes on Shopify to suit the style of your business. Light, dark, sleek, stylish ... there's a theme for everyone.
Not forgetting that there are even simpler solutions than managing a website, to get started in dropshipping.
Subscription on a dropshipping commerce platform
As far as dropshipping is concerned, it is possible to launch a sales platform. Some examples include Shopify, Prestashop, and Woocommerce--there is a whole panel of them, you just have to choose the one that suits you!
On Oberlo (little sister of Shopify) or Dropizi (French dropshipping platform), all the steps are carefully listed. So much so that in less than 2 hours, you can launch your own dropshipping site!
The significant advantage of using platforms, in addition to their free and accessible nature, is the prospects for development. Indeed, to stand out from your competitors on a platform, you can invest more money in order to have access to particular plugins.
In terms of support, these platforms allow you to select the right e-commerce provider to sell even more pocket translators.Depending on the reputation and opinions of the suppliers, the platforms offer you the wholesaler that best meets your expectations. A straightforward path, for a few dozen euros!
Bigblue tips: When you start your dropshipping business, sales will be slow in the beginning. We advise you to immediately reinvest what you earn in maintaining and improving your site or account on the platform.
3. Manage the end customer and user experience
When a product is present on several dropshipping sites, it is necessary to stand out from the competition.
As a dropshipper, make sure that customers want to buy pocket translators on your site, not someone else's site, even if the product is exactly the same. Think marketing strategy and customer acquisition!
The constraints of managing a dropshipping site
While getting into dropshipping is greatly facilitated by platforms, it still requires some maintenance.
As a dropshipper, it is your responsibility to put products online, like the new Pocket Translators you just received, and to promote them while managing orders.
This means that after-sales service is up to you, not your supplier. And since it costs 7 times less to retain a customer than it does to attract a new one, it is better to make your customers want to recommend you!
Even if you don't have to take care of the delivery, it's up to you to manage the returns if customers use their 14-day right of withdrawal, for all orders within the European Union.
Between the setting online, the maintenance of the site and the after-sales service, the management of a dropshipping site becomes immediately more energy consuming. But that's not all, as marketing is also part of your responsibility!
The increase in conversion rate with SEO
When it comes to conversion rates, the platforms are pulling ahead. While Shopify has a conversion rate of around 1-2% (depending on dropshippers), Amazon's low average is around 10%.
No matter which platform you choose, boosting your site's SEO will always attract customers. Indeed, SEO (Search EngineOptimization) is a complicated art which requires special involvement and mastery.
Take the time to train yourself in SEO and create a great web marketing strategy. Keyword search, image optimization, ergonomic UX, netlinking... Many dropshippers abandon SEO without waiting for results.
SEO is useful for writing the product sheet of your pocket translators. All your words should be chosen with care. You should use a consistent semantic field: "instant translator", "translation application", "direct translation" or "available in all languages".
That way, the search engine will take you to the top of the search results page!
SEA optimization to get ahead of the competition
Where SEO works over time, paid referencing (SEA orSearch Engine Advertising) is a real springboard for popularity.
To be sure to be THE most popular dropshipping site, you have to secure your place at the top of the search results. To do so, try to buy the main keyword of the item you are selling on Google AdWords. For example, buy "pocket translator" for a limited time. Buying a main keyword, coupled with a good natural SEO = an explosive cocktail!
From more of a marketing point of view, customer acquisition can be done through targeted publications or retargeting. On social networks with Facebook Ads or on search engines with Google Ads advertising banners.
Paid referencing and sponsored advertising can greatly increase your traffic, and therefore your conversion rate. Be aware of this small downside however--with the rise of dropshipping, the cost of advertising explodes year after year.
Bigblue tips: Before you start dropshipping, it's best to take the time to learn the ins and outs. Not only about what dropshipping involves, but also about natural search engine optimization and after-sales service techniques.
Improving your traffic and conversion rate is one of the most complicated parts of dropshipping, and it's not innate. You have to play by the rules of the search engine and according to customer requirements if you want to attract internet users!
4. Advantages and disadvantages of dropshipping compared to traditional e-commerce
Getting into the dropshipping business is quite simple. But at the end of the day, is dropshipping better than traditional e-commerce?
In theory, dropshippers can focus fully on marketing since the logistics management is the responsibility of the supplier. This is true for the vast majority of cases. However, the reality can be very different. In case of a problem, your customer will not send his pocket translator back to the supplier. He will send it back to YOU, even if you did not initiate the delivery. This means that you may end up with a stock on your hands. And it will be up to you to manage the cost of returning or reselling the product.
Moreover, the dropshipper is only a "reseller". This means that, in contrast to traditional e-commerce, he only has a choice of certain product categories. He cannot therefore sell items that standout, such as a pocket translator that cannot be found on the market. As a result, competition as a dropshipper is quite strong, whether in a niche or general market. Where the average e-merchant can compensate with originality, the dropshipper has to use pure marketing techniques to stand out. And this can seem quite redundant in the long run.
Finally, a dropshipper and its wholesaler are interdependent. So, it's a double-edged sword: if you select a supplier with whom you have a good relationship, that's great news! You can then negotiate purchase price. Otherwise, your dropshipping business may suffer. And unlike traditional e-commerce, it can be difficult to go elsewhere.
Bigblue tips: To make sure you can delegate the logistics burden without any unpleasant surprises, there is an e-commerce solution which does not need to do dropshipping: go through a logistician! An expert in the field of deliveries, returns and shipments, a logistics specialist knows the regulations of international logistics can takeout the thorn in your side.
That way, you can focus all your energy on the purely marketing dimension of your dropshipping site, as well as on optimizing your brand image!
5. How would you like to make money with dropshipping?
Dropshipping is a business model that can be profitable in the long term. But from there to making a fortune from your couch, there's a whole world out there!
Some people say that dropshipping has stopped working since 2014. In reality, with the increase in the number of suppliers and dropshippers, the rules of the game have simply changed.
Today, dropshipping is a solution that allows you to get started in the world of e-commerce, but it requires more work. Indeed, a dropshipper must invest and find the means to boost his conversion rate.
If a dropshipping site is not properly maintained, the expenses will soon exceed the commissions earned, and the business will no longer be profitable.
Want to give it a try? Here are 3 mistakes you should avoid making when starting a dropshipping e-commerce website:
- Don't believe everything you hear, and don't think you're going to make a fortune doing nothing: dropshipping takes work and patience.
- Don't think that you are exempt from involvement in the logistics side: whether it is for returns, customs or delivery charges, you may always have to do some logistics management in one way or another.
- Don't lower the selling prices of products: if you do this in order to attract more customers, remember that it will lower your margin rate at the same time. So, you have to find a middle ground, the profitable price.
So, before you start, ask yourself: are you organized and motivated enough?
Green
5 key steps for switching to green logistics in France
In order to "greenify" their logistics management, some companies have found diverse and varied solutions at different levels. And their final objective is simple: to reduce their environmental impact.
Whether it's through packaging, goods transport, technological innovations or other opportunities, there is a whole range of options for going green as an e-merchant. You just have to find the one that's right for you!
1. Transport management and ecological global logistics: a miraculous green solution for e-businesses
The concept of the green supply chain has gradually taken root in people's minds. It consists of setting up company-wide attempts to measure and minimize ecological impact.
Whether it's for regulatory, ethical, or financial reasons, as an e-commerce brand you have the opportunity to take action on your environmental impact at different levels. It all depends on the size of your company, its structure, and the allocated budget!
Even if protecting the environment by modifying your supply chain may involve some investments (time and financial),your efforts will soon be rewarded! Indeed, consumers have the same awareness as entrepreneurs: in 2019, 70% of French people claimed to have selected certain brands over others based on their social and ecological commitments.
From product returns to sourcing, through to packaging, road transport of goods and new technologies, there are many avenues for development. With the help of your logistician or your logistics service providers, identify THE solution that will suit you!
2. Production management and green sourcing
The implementation of greener logistics sometimes requires questioning an entire production logistics organization. Although this can be daunting, the reality is not so unachievable. The proof is that the Cabaïa, Loom and Né à brands have designed all or part of their supply chain with the aim of reducing their environmental impact.
As for the "production" link in their supply chain, they use only local materials. For example, if you make and sell a light pink tailored shirt, you can have it made in the EU(which means much less transport), under the supervision of the eco-labels you rely on.
Eco-labels are a good way to express your ethical values, in order to be transparent with your buyers. Eco-labels can be applied at different levels of the supply chain, be it production, labor, delivery, or sourcing.
And even if your raw materials come from outside the European Union, you can import them by sea freight, instead of by air. Even if your customers have to wait a few more days, no one will die when it comes to a shirt!
Eco-friendly sourcing and production are becoming more and more important in e-commerce supply chains. Over the years, brands have become more aware of their environmental impact, and the slow industry is starting to take over from the fast concepts (fast fashion, fast food, fast cooking, etc.).
3. Eco-packaging for cost-effective shipping and packaging
Once the production is finished, then comes the packaging. E-commerce companies tend to wrap their products in plastic tape to ensure that they arrive in good condition. But this is a bad idea if they want to maintain their image and ethical stance!
You can use reusable and recyclable materials. In certain forms, plastic is for example 100% recyclable. But you can also use alternative materials to plastic: all-natural, milk-based, soluble... There is something for every industry!
Otherwise, other fairly common materials such as cardboard can be recycled in certain contexts. But be careful with cardboard--do not use tape! Add even a small piece of tape to your cardboard, and it is no longer recyclable.
In a purely quantitative way, some e-commerce brands tend to practice over packaging which harms the environment as well as the company's image. For example, if you want to send the light pink tailored shirt to your customer, it is better to adapt the packaging to the product. A shirt is not a fragile object, nor is it bulky. You can therefore easily wrap it in a recyclable plastic pouch or in a small foldable cardboard box.
Even if it is important to have the customer's interest in mind, don't forget the environmental impact of your packaging. Think of all the innovative solutions, which you may not be aware of yet!
4. The implementation of new technologies in your IT logistics network
Beyond the practical side, the theoretical dimension of supply chain management implemented through e-commerce can also have major ecological consequences. But thanks to the emergence of technological innovations, companies are solving this problem little by little!
Brands and companies have developed many technological tricks to reduce their environmental impact at all stages of the supply chain management.
When placing an order, some e-merchants use augmented reality, so that their buyers can envisage themselves wearing a product. To take the example of the pale pink shirt you sell, if your customer can create an avatar according to their measurements, it will be easier for them to see the reality of the product. That way, there is less risk of return!
If they like the virtual visualization of the shirt, your customer will place an order. And once again, the use of anew technology can help you. There is a lot of software available to help your employees in the warehouse, whether it is to help minimize the risk of order errors, or to optimize the palletization of your means of transport.
To go even further, reducing your carbon footprint can start at the very beginning of your e-commerce creation.Indeed, creating a website implies the use of a computer server. But servers can be a real ecological disaster. To remedy this situation, you can find out how to choose a green host for your e-commerce site that shares your ethical principles.
Between the reduction of returns, better data management, and many other solutions, technological innovations are pushing the green supply chain further and further within everyone's reach!
5. Environmentally-friendly modes of freight transport
Once your slim-fitted shirt is manufactured, packaged and ready for shipment, the crucial moment comes when you decide on your mode of transport.
Due to the vital urgency of some deliveries, many brands deliver their products by airplane. But for delivering a simple shirt (no matter how pretty it is), maybe it's not worth the rush? Express delivery is fashionable, but ecologically it is not necessarily the right solution.
Many e-merchants choose to go with road deliveries. This is one of the most polluting means of transportation and is the most used (especially because of the last kilometer). Fortunately, many environmentally-friendly alternative means of transport are being introduced little by little.
For example, instead of using only trucks, you can work with a local carrier who uses cargo bikes or electric cars. Similarly, some large cities such as Paris are equipped with warehouse ships, which allow goods to be stored on a barge for delivery to the nearest relay points. All this while limiting CO2 and polluting gas emissions!
Even more concretely, you can rethink your delivery scheme by delivering your products to a collection point in an urban area instead of home addresses. These large warehouses are accessible to the public and allow buyers to come and collect their orders directly and try their products on the spot. For example, your customer will be able to try on their pale pink shirt to see if it is the correct size for them. This way, there is no back-and-forth on the back roads, and no last mile problems!
More and more revolutionary ecological means of transport are appearing on the e-commerce scene. From drone deliveries to bicycle deliveries, there is a logistics solution that suits you!
6. Logistics services to minimize product returns
Beyond the mode of transport to reduce the number of returns, you can take action on an even larger scale. Nearly 40% of clothes ordered on the internet are returned to the supplier-- it is impossible not to think about the greenhouse gas emissions that contribute to air pollution. However, as an e-commerce company, you can use different levers to reduce and better manage your product returns.
It is possible to tighten or adjust your return policies. Free returns are now the norm which is excellent for customer service, but very bad for the environment. To minimize the resulting environmental damage of free returns, it is possible, for example, to set up a depot in large cities. For example, if one of your customers buys a light pink slim-fitted shirt on your site, but it turns out to be the wrong size, they can simply pack it back up again and drop it off at their local collection point.Then your carriers come by once a week to collect all the packages and send them back!
Other common reasons for product returns are discrepancies in product expectation versus reality and the wrong addresses on shipping labels. As an e-merchant, by describing your pale pink tailored shirt in great detail, you reduce the risk of customer disappointment, and therefore the risk of a return.In the same way, before confirming any order you can set up an address verification software. Indeed, many parcels are returned to the sender because of a wrong address.
Some e-merchants go even further, and link eco-friendly returns and eco-packaging, giving a new lease on life to their packaging. Thus, the packaging of your tailored shirt can become a jewelry box, a vase outline, or a drawer decoration.
The options are endless for rethinking your returns management and for the continuous improvement of your eco-responsible image! And it's not the only step in your supply chain that can change.
Whether it's for procurement, packaging, delivery or transportation, more and more e-businesses are tending to put environmental issues ahead of financial ones. This is what we call being eco-responsible!
7. Having an efficient and ecological logistics project: dream or reality?
Green e-commerce logistics is not an unrealistic utopia. In fact, it is a concept that can be implemented in all e-commerce businesses, including yours. Whatever the structure and capabilities of your eco-responsible brand, you can act on your own scale.
From reducing returns to implementing transport software, packaging, and production, you can completely change your entire supply chain, or simply improve it ecologically, link by link.
When it comes to green supply chain management, there are solutions for everyone and at all heights. So, consider your options: which ones can you implement at YOUR level?
E-commerce trends
Everything you need to know about dropshipping in 5 minutes!
Taking flight on the huge e-commerce scene can seem scary. But if you want to take the plunge without taking too many risks, there is a solution: dropshipping.
This e-commerce practice, which has been very widespread in recent years, consists of commercial transactions involving 3 service providers:
- The customer
- The e-merchant (you)
- The wholesaler, or dropshipping supplier
But how does it work? Who are the players in the dropshipping market?
1. Creating a dropshipping shop to sell your products: a good idea, or a big mistake?
Dropshipping is a simplified online sales system which involves the e-commerce merchant acting as an intermediary between the customer and the e-commerce wholesaler.
Thus, thanks to the development of merchant CMS and numerous marketplaces, dropshipping makes it possible to develop online commerce in its commercial dimension, without having to manage the production or logistics often involved in running an e-commerce business.
Today, between 22% and 33% of online stores practice dropshipping. Perhaps this is an opportunity not to be missed? Focus on dropshipping and its practical application!
2. Using dropshipping for your webshop: how does it work?
The interest of dropshipping starts by understanding how it works and how it is implemented in the heart of the commercial system.
How dropshipping works?
A dropshipping circuit is divided into 3 phases:
- Phase 1: a customer orders a product, for example a fancy mouse pad on an e-commerce site. The site manager is informed and notified of the purchase, and when the customer pays for the order, the e-merchant takes a commission.
- Phase 2: the e-merchant orders the mousepad from his supplier, who is at the origin of his production.
- Phase 3: the dropshipping supplier takes care of the logistics and delivery of the package, directly to the customer.
The most obvious advantage of using dropshipping is that it fully delegates the logistical dimension of e-commerce.
As an e-merchant, you can then concentrate exclusively on the central part of your business - distance selling! You don't have to organize logistics, create packaging, choose a carrier, check the address, organize the tour, take care of stock management...
The only things you have to worry about are the transmission of the order, and the marketing and promotional dimension of the products you choose.
Quite simply, you don't create and deliver your products yourself - you simply promote the products made by the supplier of your choice. This may not be as simple as it sounds, but it helps you to not get lost when you're just starting out in e-commerce!
Basically, dropshipping allows you to dip your toe in the water before you dive in. And for longer than it seems!
An on-point e-commerce solution, to create a store without managing products.
In fact, dropshipping is a business model that has been used for a long time, by TV shows like Tele Shopping for example. The presenters promote certain products, and the TV channel gets a commission each time they manage to sell a product.
More recently, many marketplaces such as Rue du Commerce, Amazon, and eBay have exploited dropshipping without the general public necessarily realizing it. These platforms sell products offered by suppliers, and they take a commission for each sale made.
For young e-merchants who don't know where to start, dropshipping is a good solution. All you have to do is invest in a good CMS (content management system) to create a dropshipping site or an account on a marketplace, and that's it!
And to be able to start slowly is far from negligible. Indeed, it's not because you start on the e-commerce scene that you necessarily succeed. Fevad has counted more than 200,000 merchant sites in France in early 2019, and among these 200,000 sites, nearly 66% of them had a turnover of less than €3000 per month.
So dropshipping is positive for suppliers who multiply their sales channels without doing anything. But also for e-merchants, who can earn a commission on purchases without investing a penny!
Having said that, going into dropshipping implies having a certain knowledge of the market and the players present, in order to know the full extent of this activity.
3. The dropshipping market: product suppliers and marketplaces
Between product manufacturers and dropshippers, the dropshipping market is a vast playground. And the more players there are, the more the market expands. That's why over the years its access has been facilitated by the creation of platforms.
Dropshipping suppliers
The dropshipping market is fueled by suppliers and wholesalers - manufacturers who offer their own product catalogues. There are different types of wholesalers, depending on their field of activity and the quality of the products.
Most of suppliers are, for example, generalists - they offer products of all categories, to ensure that the cyber buyer finds what he is looking for on their platform (pet shop, hygiene products, IT, etc.).
One of the many giants of international dropshipping is AliExpress, and you can find absolutely everything on its e-commerce sites. Webdrop is also a generalist marketplace, exclusively in French.
Other platforms are specialized in particular fields. For example, Nova Engel only deals with the production of cosmetics, and Emuca Online deals only with accessories and furniture hardware.
This way, dropshippers have a wide range of choices. A choice that is often summed up by: quantity of products, or quality?
In any case, if you decide to become a dropshipper, it is important to find an e-commerce supplier with whom you have good communication. Indeed, the dropshipper depends on the wholesaler, and vice versa. This means that your supplier's actions and decisions can have a significant impact on your dropshipping activity (for example, change in sales price, production stop, stock availability, etc.).
To avoid wasting time working on the product sheets of an article that is no longer available, communication is key!
Platforms to create your online shop
The more suppliers and dropshippers there are on the market, the better the dropshipping is. Its access is therefore increasingly facilitated by the development of ApplicationProgramming Interface (API), which allows certain affiliates to take over a supplier's entire catalogue.
Once you have selected the supplier and the products you are interested in, dropshipping is just a few clicks away.
To avoid investing in the creation of merchant websites, you can create your own e-commerce shop on specialized platforms such as the French marketplace, Dropizi, which has the particularity of working with major suppliers in the dropshipping market.
These established dropshipping platforms help you in your choice of the ideal supplier. They calculate different proposals and give you a result based on the reputation of the supplier according to reviews, the number of orders placed, the delivery times, etc.
To get a wider view and play immediately in the big league, you can register on larger platforms such as Shopify or WooCommerce. They have very competent plugins (such as Oberlo for Shopify) to guide you in your choice of supplier.
The large marketplaces offer a wide choice of business models. You can get into e-commerce dropshipping right away or keep a foot in the "classic" profitable e-commerce by selling your own products.
Even though they create more opportunities for customers and growth, large marketplaces also mean strong competition. Many e-merchants are going into dropshipping on the largest platforms, hoping to prosper faster. Therefore, it is necessary to know how to stand out so that customers choose YOUR products!
Bigblue tips: Whatever your expectations, make sure you select a platform that fits your needs and future plans. Whether you want to do dropshipping for the rest of your life or if it's just a temporary phase, your choice of platform will not be the same.
Indeed, you must follow the regulations imposed by the platform you have chosen. However, some marketplaces have very strict dropshipping conditions which may not be in line with what you think: rigorous drafting of product sheets, prices, terms and conditions of sale, information given by the supplier, etc.
No matter what comes your way, keep your expectations and forecasts in mind, and choose the platform that suits you best!
Selling your products in dropshipping: the advantages
Dropshipping is at the peak of popularity. Indeed, its theoretical advantages for both young and established e-merchants are almost undeniable!
It is an excellent business solution for testing the reaction of your potential customers to the arrival of a new product. For example, if you sell computer chairs and the fancy mouse pad, dropshipping could be a way to try to expand into this market.
All you have to do is offer the item on your site and see whether orders are coming in or not. If you don't have any orders for a predefined period of time, there's no point in investing in a whole sale purchase of mousepads. On the contrary, if you have a lot of orders, you should go for it!
Dropshipping is a real test of the market reality and it's almost free of charge. It can be ideal if you want to widen your product range as it does not imply any financial investment for you as the e-merchant.
This business model is based on the just-in-time principle, which means that there is no overstock to manage for you (unless you choose to work with a push-flow rather than pull-flow supplier, in which case you have to take on the storage costs).
Bigblue tips: If you want to get into dropshipping but don't know what product to sell, maybe it's worth entering a niche market.The competition is bound to be less tough, even if you attract fewer customers.
You can also opt for better suppliers who are geographically close to you. This reduces delivery times AND the prices that customers will have to pay. So, more chances to sell products, without reducing your commission!
4. The world of dropshipping in your own ecommerce shop: why not you?
Dropshipping is a simplified way to access e-commerce. If you start in the world of dropshipping, you take the burden of production, logistics and delivery off your hands. You only have to concentrate on marketing, product promotion and order transmission.
Dropshipping is a business model that can also be of interest to e-merchants who are well established in the market. Indeed, it is an excellent way to test the compatibility of a product and a market with a customer base. All this without the need to invest up stream since the idea is to promote another person's products.
Getting involved in dropshipping involves maintaining a sales site on the internet, whether it's a website or an account on a marketplace. If you prefer the second option, take your time when choosing your sales platform. The regulations of the latter may affect your future projects.
To take advantage of the benefits offered by dropshipping, don't rush - study all your options!
E-commerce trends
Facebook Shops: E-commerce Gamechanger?
1. Facebook shops - a major novelty in internet commerce
The Facebook group found that, following the pandemic, nearly one third of small e-merchants in the United States have ceased their activity. With the physical closure of many businesses and a sudden surge in online purchases, Facebook decided to create a sales platform to help small businesses that have suffered from the imposed restrictions and that are struggling to recover.
A few years ago, Facebook set up a Marketplace to facilitate the exchange of products between individuals. But with Facebook Shops, it's something else again!
From the easy and free access tot his new feature to the creation of a new cryptography, the Facebook group strikes a big blow. Perhaps to the detriment of e-commerce leaders (Shopify, Amazon...). Focus on this new feature of e-commerce!
2. How to sell your physical products via Facebook?
This is the very first time that a market place is directly and exclusively linked to a social media platform. From the interface to promotions, through to customer service, with Facebook Shops, everything is different!
Customizing the Facebook Shops interface
The main feature of Facebook Shops, which is likely to catch the eye of many e-merchants is its accessibility and the fact that it's free of charge.
Indeed, the creation of an online and customizable shop on Facebook Shops does not involve any expense or investment. And the process is quite simple!
The principle of Facebook Shops is to create pages for commercial purposes accessible on Instagram and Facebook, without having to go through the e-commerce shop of a company. The idea is that you only need to create a professional Facebook account dedicated to your business, without having to invest in the creation of an e-commerce site.
For example, if you sell notebooks. All you need to do is create a professional Facebook account in the name of your business. Then you just have to create a collection, with product photos, prices, descriptions, names, and it's done! Then, you can publish it when ever you want.
You can even create all your collection catalogues in advance and publish them whenever you want.
The men's clothing brand Octobre is currently promoting its summer collection using a shop to sell on Facebook.Launching a store on Facebook Shops is completely free, unless customers choose the check-out option (quick payment), in which case a small commission will be charged by Facebook.
These innovations are of particular benefit to entrepreneurs who are just starting out in the e-commerce market.With a Facebook Shop, you don't need to invest in the creation of an e-commerce site, which can sometimes be complicated to manage, saving you time and money!
Spontaneity to take care of your new customers
Since the buyer is not necessarily referred to the company's e-commerce site, the question of the quality of customer service may occur. But in reality, customer service in a Facebook Shop is almost as simple as in a classic shop!
For example, if your customers need advice or clarification on a product, they can contact you spontaneously via WhatsApp, Messenger, and even Instagram Direct.
Then, you or your sales people respond to the buyer as quickly as possible. This mode has all the advantages of an online sale combined with those of a physical shop!
The increasing role of influencers in marketing a product
Immediate customer service isn't the only good thing about a Facebook shop. Indeed, being exclusively online and linked to social networks, the promotion of your products can be easily facilitated.
In a world where the role played by influencers is becoming more and more important, creating an online shop on social media is about combining the useful with the pleasant. With the creation of Facebook Shops, you have the opportunity to make direct partnerships with influencers.
In other words, they can tag your products directly on photos, videos, or lives. Thus, their community of followers only has to click on the tag to be redirected to your shop where they can buy the promoted product that caught their eye.
In addition to the visual presentation and immediate promotion of your products, you benefit from an optimized ease of access since there is a direct link between a Facebook photo or a Facebook video and your shop.
When it comes to improving conversion rate, Facebook has got it right! What's more, the social networking giant doesn't intend to stop there, as many plans for the future are on the way.
3. A preview of a new optimized version
A recently released innovation, Facebook Shops is still in the development phase and it is being tested in the United States, the birthplace of its founder.
But many projects are in progress:from the improvement of the platform itself to an Instagram shop via a new crypto currency, the Facebook group is looking further!
Marketing products via instant messaging
Although some of the functionalities of Facebook e-commerce sites are still under development, this does not prevent the teams from anticipating future improvements.
Indeed, Mark Zuckerberg is already considering the possibility for buyers to proceed with payment directly from a Messenger or Instagram chat conversation. In this way, purchasing will be almost entirely automated in order to facilitate decision-making.
In addition, Facebook is in the process of developing the integration of corporate loyalty programs. This will attract online shoppers and make them want to come back!
The opening of an Instagram Virtual Store
Besides extending the functionality of Shops, the Facebook group wants to apply this principle to Instagram as well. A social network that has been growing for many years, it is the most popular social network for the majority of the population. So why stop at Facebook?
Starting this summer, the Facebook group plans to launch Instagram Shops in the United States, and it will be based on the same concept as the first social network.
Since both networks belong to the same group, the idea is that you can publish your new collection on Instagram and on Facebook at the same time, with just one click. Of course, you can also choose to publish your collections on only one social network!
The principle of Instagram Shops is exactly the same and it would work with the same features. Having said that, creating two new marketplaces on social networks doesn't stop there. Facebook also had to think about overcoming financial obstacles to expand internationally.
The new unified cryptocurrency and means of payment
With the participation of 28 major companies and NGOs, the Facebook group has initiated the creation of a new crypto currency in June 2019, named Libra. If the idea is not met with opposition from financial regulators, Libra should be up and running by the end of 2020.
The creation of a new virtual currency will facilitate large-scale trade. The principle would be to buy virtual tokens with real money, and to exchange these tokens as products. That way, there will be no additional costs for international transactions.
To go even further, Facebook has embarked on the creation of a new virtual wallet, under the name Novi. It is designed to work in connection with the Libra currency, and would allow you to make a transfer as easily as sending a message. Facebook says that there are no hidden fees, and that the risks of fraud are limited by identity verification.
Like PayPal, Lydia or Pumpkin, Novi is a wallet linked to the bank account of the cyber-buyer. The only difference being that Novi works with Libra - therefore, there is no currency conversion to be made for international payments.
These innovative developments, from anew cryptocurrency to the virtual wallet, are breaking down the financial barriers for international trade. Clearly, the goal of the Facebook group is to expand Facebook Shops on a large scale and to achieve international export, without limits and without borders.
4. Facebook Shops - the art of creating an e-commerce in just a few clicks
With the hardships caused byCovid-19, various brands have experienced a digital boom in the past 8 weeks that normally would have taken 5 years in the absence of the crisis. Taking advantage of this momentum and the flood of internet orders, the Facebook group has changed the rules of e-commerce.
In order to help smaller e-merchants who have just started up their business to recover from the economic downturn, Facebook has created a commercial feature directly on the social network. With no currency or transaction cost barriers, companies will be able to manage their business and sell directly from their Facebook page.
The desire of the social network world leader is to unify the market and proceed with trouble-free internationalization. By working hand in hand with Shopify and other e-commerce leaders, Facebook is pointing out that the delivery and logistics of this international trade is dependent on e-merchants.
Once you've connected with an international audience through a Facebook shop, working with a specialist logistician can allow you to fully develop your business on the international stage. Surrounding yourself with professionals is a long-term investment!
Green
How to master eco-friendly sourcing and production?
1. Adopting responsible behaviour on a daily basis with green sourcing
From the choice of raw materials to the manufacturing process via the country of manufacture, everything can have an influence on your environmental impact.
As part of your eco-logistics approach, going through local production and using materials that are geographically close is a mandatory step. But is it really worthwhile to produce locally?
To answer this question, Bigblue interviewed three e-commerce brands with different logistics approaches:
- Cabaïa: An eco-friendly e-commerce brand specializing in textile accessories (hats, socks, backpacks, pouches...). Their objective is to improve processes and to use recyclable materials to reduce their ecological footprint.
- Né à: A company selling dermo-cosmetics for newborns, Né à provides eco-responsible products that can be used in clinics and purchased online. Their primary concern: the transparency of its dermo-cosmetics. Né à only produces in France and makes it an obligation to respect ecological certifications and to use 100% eco-responsible packaging.
- Loom: An e-commerce brand for men's clothing, Loom's goal is to make clothing as durable as possible, at affordable prices. The manufacturing process is designed to ensure the longevity of the textile, while respecting the environment.
The production processes of these three brands are all geared towards environmental protection and eco-responsibility.Affirming the environmental and ethical commitment of your e-commerce may involve making certain choices and adapting your production logistics to the circumstances.
From production made in Europe to the transport of goods via multimodality, reducing your impact on the environment is possible!
2. Reducing environmental impacts: production made in Europe
Manufacturing in Europe can be much less polluting than producing your goods abroad. That said, producing in Europe and even worldwide is not always an option, even if you can make the most of the situation to be more environmentally responsible.
The ecolabel and the sustainable approach of your e-commerce
Obtaining sustainable European labels for your e-commerce brand is a good way to assert your ethical orientation. Oeko-Tex, Bluedesign, PVC Free... There is a whole range of labels that allow your consumers to find out more about your manufacturing priorities.
Whether it is for the traceability of ingredients, the origin of raw materials or working conditions, having a European eco-label allows you to lock in certain guarantees and ensure the transparency of your brand.
For example, the entire production chain from Né à is Ecocert certified from the supplier to the client. Thus, consumers who buy a Né à product know that they are choosing organic, traditional fair-trade products.
Similarly, Cabaïa manufactures flip-flops inAsia, due to the lack of factories and expertise in France. Not being covered by an eco-label, the brand ensures it works with eco-responsible partners, certified Fair Wear, GOTS (organic textiles), GRS (recycling processes) and BSI (environmentally friendly products).
In addition to being part of a positive ecological approach, the labels allow you to communicate easily with your buyers. By ordering from you they know what to expect. An ecological attitude is always better than a polluting and disrespectful image!
The environmental ethical trend of eco-friendly exports
Manufacturing abroad does not necessarily mean an ethical ecological disaster. In fact, no matter how committed you are to the environment, you may be forced to export your production line abroad depending on the types of products you sell. But this does not necessarily call into question your environmental policy as a committed brand.
To take the example of the French brand Né à, which manufactures its products exclusively in France: this is possible because the expertise and dermo-cosmetics factories are located in France. Otherwise, the company might have been forced to relocate its ethical production.
Similarly, Loom prefer to export the manufacturing of their clothing and accessories to Portugal, the cradle of the textile industry. Production is governed by European laws which ensure the quality of production and working conditions. Not to mention the fact thatLoom's teams can go out into the field at any time to see the reality and challenges of the market. During an interview with Bigblue, Clément Potier fromLoom said "Going on site is worth all the audits in the world".
In a more extreme case, Cabaïa was forced to export to Asia to manufacture flip-flops due to the lack of expertise and factories in France. Having said that, its choice of partner and its ecological labels Oeko-Tex and Vegan make it easy to understand that exporting is not synonymous with significant pollution.
Thus, exporting manufacturing abroad does not necessarily mean that an e-commerce company does not monitor their production and the reality of the circumstances. You can therefore export your logistics, while demonstrating corporate social responsibility.
3. The right mode of transport is essential in your eco-responsible and ethical approach
Beyond the location of the manufacturing factory, other stages of the supply chain such as the transport of goods can have a substantial impact on the carbon footprint of your e-commerce. The choice between air, road, rail or sea can be complicated!
Sustainable commitment without air travel
Aircrafts live up to their reputation as the second most polluting form of freight transport. While the use of air freight is justifiable in the case of transporting perishable goods or in the case of emergency deliveries, it remains a real ecological disaster.
Fortunately, only 5% of freight flows are carried by air. It is an expensive means of transport, not very environmentally friendly and subject to delays.
Products transported by air are often checked, which can slow down deliveries and limit the number of journeys made.
That said, these restrictions do not prevent some fast fashion brands from sending their orders by air to work on a just-in-time basis. In total contrast to Loom's ethical principles, large companies tend to constantly create new collections. This has major environmental consequences, since 4% of the world's drinking water is used for their production. Not to mention the fact that the goods are brought in by plane to end up amongst the 4 million tons of textiles that are thrown away every year in Europe!
As Lorraine Borriello, Director of Operations at Cabaïa, says, "Even though it is an ecological and environmentally friendly product, the less you produce the better". Especially when it hast o be shipped by plane!
Road, sea and rail routes: balancing environmental impacts
Fortunately, planes are not the only means of transporting goods, there are still trucks, boats and trains.
Road transport:
Road transport handles 90% of the flow of goods and is therefore responsible for 30% of greenhouse gas emissions. The use of the truck is very convenient. The routes are adaptable according to requirements and linking the axes together is not impossible. In addition, it is possible to wait for orders to accumulate before setting off with a truck: ecologically advantageous and economically advantageous!
That said, even if it is a practical and environmentally friendly method, trucks still emit extremely polluting micro-particles into the air. Additionally, they can be slowed down by traffic and create bottlenecks on the roads themselves.
Much more eco-friendly than the airplane, road transport is used by Né à, Cabaïa and Loom. Rejecting the idea of express transport, Loom said, "We sell socks, we don't save lives. People can wait another 48 or 72 hours".
The boat:
Holding 10 to 15 times more goods than a truck, the boat is an excellent, less polluting alternative. Cabaïa and Loom both bring their products and raw materials by boat, which takes more time than by plane but is much greener.
Boat trips are not empty, and all goods can be delivered safely. In fact, for every 200 accidents related to the transport of goods, only 1 involves a ship. Whether by sea or inland waterway, boats may be slower, but they are safer and less polluting (even if the use of the wrong fuel can lead to the release of micro-particles).
The train:
A very good alternative to boats and even trucks, the use of railways is much more eco-responsible because it emits less CO2. In addition, the energy used to power the train can be electric and green.
More and more railway lines reserved for goods are being developed. For example, in 2011 the China-Europe Railway Express was launched. This is a railway line covering several thousand kilometres which connects China to many European countries, including France.
The train option is twice as expensive as the boat, but half as expensive as the plane. That being said, we don't necessarily know the source of the electricity that powers the boat: coal, nuclear, green?
4. Multimodality: a solution for an environmentally friendly company?
Each means of goods transport has its advantages and disadvantages from an ecological point of view. For you re-commerce brand, the ultimate solution does not necessarily lie in a single means of transport but perhaps in several.
By combining the advantages of several means of transport, you can give priority to efficient delivery but also to the preservation of the environment. Multimodality could reduce greenhouse gas emissions by 35% nationally.
In addition to its ecological efficiency, combined transport also makes it possible to customize routes according to requirements and to optimize them from an economic point of view. This may not be negligible in the long term!
However, it does require a certain amount of organization to change each journey and to calculate the most worthwhile means of transport according to the routes. To relieve you of this burden, calling in a professional logistics firm can be an appropriate solution.
Whatever your choice, selecting the modes of transport has a direct impact on your ecological charter.
5. Assert your environmental approach with the ecological solutions that suit you!
As an e-commerce business, it is sometimes impossible to produce all goods in France. Depending on the types of products you sell, you may find yourself forced to export your production abroad to get closer to a specific area of expertise or a manufacturing plant.
But exporting is not necessarily an ecological disaster! Even if you don't have the choice of location, you have the choice of means.
Make sure that the production of goods is done in the greenest possible way. Find out about eco-labels, follow environmental guidelines and, above all, select the right means of transport.
However, the right means of transport will not always be the same for every journey. To avoid unnecessary pollution, you can use the principles of multimodality. Use a truck, barge, boat and/or train to optimize your journey, without emitting too many greenhouse gases!
In all cases, you can choose to work with a logistics specialist who listens to you, takes your priorities into consideration and adapts to the situation.
From the production site to the means of transport, you have all the cards in your hand to go green sourcing!