Many people are reluctant to open an online store. This is because the initial costs are high and the potential problems to be encountered are tempting. But imagine someone paying the start-up costs and probably finding solutions to the problems encountered. It would be a lot easier to get started, wouldn’t it? Factory sales to the public ( download delivery ) to do this means. Taking the initial step doesn’t require a lot of expense and eliminates potential problems from encountering.
Information on what it means to sell from the factory to the public, the benefits and any problems you may encounter are shared in this article. There are some tips that will allow you to get the most efficiency out of selling with this method.
What is Drop Shipping?
Selling from the factory to the public is a kind of selling method where you don’t need to keep the products in stock at some point. You agree with a wholesaler to store the products, deliver incoming orders and address information to the wholesaler, and the wholesaler takes care of the rest. In this sales method, you are not interested in the costs of storing products in one place and other possible costs.
However, many customers are unaware that you are using the factory-to-public method. Since everything will be handled confidentially, as long as you manage to maintain sales, customers will continue to access the products they receive.
Advantages of factory sale to the public
Using the factory-to-public method will have many benefits. The following information covers some of these benefits.
You don’t need too much money: Selling from the factory to the public is the easiest way to start selling online. You continue to offer and sell products to your customers without spending a lot of money on product storage.
Convenience and efficiency: When you have very limited resources, it takes a lot of work to open an e-commerce site and keep it running and wait for it to succeed. It frees you to act without thinking about possible questions and the high initial investment. This makes it much easier to focus on customer service and marketing plans.
Mobility : Since physical needs are met, you don’t have to deal with them much. You can reach your business from anywhere with the Internet and continue to run it.
Reliability: Selling from the factory to the public may seem very foreign to you at first and you may have some reservations. However, this business model is highly reliable. Many small and large businesses try to supply their products to their customers using this method.
4 Possible problems in factory sales to the public
While it has significant benefits, factory-to-public sales are not an ecommerce superstar. Like all other business models, factory selling to the public has its advantages and disadvantages. Most of these problems can be eliminated with informed, timely interventions and good planning. In this way it is possible to successfully manage sales from the factory to the public.
Excessive competition and poor stock
It is true that there is a lot of competition for products to be offered to the public from the factory. Due to this competitive situation, you may have to make more price cuts on products than necessary and even accept that the actions you will get are bad.
If you want to be successful, you shouldn’t depend on the price. Instead, you should create a different space where you can show yourself by providing good product information and increasing the quality of service.
Synchronization problem with products in the warehouse
The easiest way to overcome this problem is to work with more than one wholesaler. You should consider working with more than one wholesaler, as working with a single wholesaler means that you will encounter problems such as running out of stock when it comes to. This way, you can continue to offer customers the product they require without stock issues.
In some cases, the product ordered by the customer may not be available in stock. In this case, you would generally consider canceling the order, but this may not be the right approach. Instead, you can impress the customer by telling them that you can ship a much better product for the same price. You may think you are making a loss from this sale, but you will actually be making a lot more money.
It’s hard to sell products
The hardest part of e-commerce is being able to sell an invisible product to the other party. This is a very challenging situation. Also, in order to sell the product, you need to provide the customer with all the information they need about the product. At this point, you should get to know the product closely to answer questions about the product. For this, you can get information from the manufacturer or get product information by purchasing some products yourself. You can then sell the purchased items as second-hand or repackaged items.
Difficulty doing business with third parties
The best companies that sell from the factory to the public rarely make mistakes, but newcomers make more mistakes. The qualifications of the wholesalers you work with are very important in this regard. In some cases, additional requirements may arise, and when they cannot be resolved, serious reputation problems may arise.
It may be possible that a product is returned to the customer or exchanged for a different product. If the wholesaler does not agree to cover this cost, all responsibility remains with you. If you don’t pay, your brand will suffer serious damage and you may not be able to resell the products to the affected customer.
These problems need to be resolved before they turn into long-term problems and consequences. Any problem you can’t solve will be written as negative points for your family, and that’s too important to ignore in terms of brand reputation.
Sales from the factory to the public Can you solve every problem in the field of e-commerce? Obviously not. As long as you increase your site, quality of service and quality of customer service as all successful ecommerce sites do, you can overcome the problems you will encounter in the ecommerce field.
Drop shipping offers you the possibility to easily enter the e-commerce area. The rest is shaped by your management and planning approach. If you want to be successful, you should be able to manage your brand well and put your signature under the plans that will add value to it.