Small- and medium-sized businesses are an integral part of the Australian economy. They are innovative, streamlined and offer fast, real-time customer service with a personal touch. The World Wide Web has enabled these entrepreneurs to reach a larger audience.
As your business expands, you may face new obstacles. Online customers demand variety, flexibility, affordability and real-time shipping. At each stage of your business development, drop shipping can help you to fill in the gaps.
Creation of a new brand can be quite challenging. There are so many copyrights, trademarks and patents already. You might not even plan on inventing a brand new product; perhaps, you observe your neighbors struggling with some task and know the perfect solution.
Nowadays, Australian startups have more technological tools and capital resources to help them succeed in building their brands. Even so, all small firms continue to suffer from limited display, storage and holding space. They might simply lack the funds to rent out a larger shop, warehouse or building; some entrepreneurs are financing their small businesses on credit cards.
The good news is that drop shipping might allow your small company to sell merchandise, which is not physically located on site. You can overcome your space problems and continue to process orders rapidly. Each startup follows a relatively similar path from innovation to full maturity:
Eureka: It Works!
What is This?
Product Line Extension
Of course, each startup has its own path, but the basic pattern remains the same. Small firms can offer more innovation than large multinational corporations. Large corporate bureaucracies tend to recycle the same, old outdated products.
Can Do Attitude!
Dropshipping fills in the gaps, which small operations might have. Your customers don’t really want excuses. They want the same number of products, high-quality customer service and attention that large corporations deliver. Drop ship is the answer to a number of small business conundrums.
1. Eureka: It Works!
The entrepreneur needs to prove that his idea can actually be turned into a useful, fully-functional product. He might construct prototypes – out of paper, wood, metal or other materials – in his garage. This transforms his dream into reality.
It might not be pretty, but if it works, then you have completed the first stage. Most businesses will make a couple of different models and conduct some consumer marketing tests to see which the public prefers. This is your “proof of concept,” allowing you to copyright, trademark or patent your creation.
Dropshipping allows vendors to send intriguing new products directly to the consumer. This can help eTailers discover if there is a market for their merchandise.
2. What is This?
Once your product works, you will want to develop the best design. Some inventions look quite different from how they were originally constructed. Fine-tuning your initial discovery into a marketable product completes the second stage.
Doesn’t it seem like once you finally become accustomed to a great product, it becomes obsolete? Shoes are a good example of this observation. The top brands want to keep their selections fresh.
The automobile industry has understood the cache of vintage, classic and antique models. The iconic 1968 Holden Monaro coupé increases in value due to its desirability by collectors. You can include a special space for vintage and heavy objects (appliances, computers, equipment, machines and automobiles) in your product catalog when you are using Australian dropshipping.
When you settle on a finished product, you might leave out some more exotic models. Wholesale dropshippers can still include the more exotic models in their product catalogs.
3. How Much?
You might simply want to see if your Web-based business concept is viable. Engineers manufacture items, but the accountants have the final say. They need to balance revenue and expenses to find a happy medium. Which manufacturing method will allow you to make customers happy, while delivering sensible profits?
Only the top multinational brands have their own fully developed shipping network. Shipping costs can fluctuate dramatically based on fuel prices.
Of course, with drop shipping, you can offer a lower price on items that are not directly in house. Carry less inventory and concentrate on the most profitable merchandise. Drop shipping delivers fast order fulfillment, making your firm more efficient.
Drop ship allows you to create two cost structures for fulfilling orders – one for on-site and one for off-site. Finding the right price for your products, shipping and business completes the third stage of development.
Keep your costs low with Australian warehousing drop shipping. You don’t need to rent out a large warehouse. Lower overhead means that more money can be reinvested in growing your business.
4. Brand Recognition
What is your key brand differentiation? What do you offer that the competition does not offer? You will need to determine what brand value, you deliver to the customer.
The American Society of Business and Behavioral Sciences found that about one-fifth to one-third of Internet retailers
In fact, according to Brand Directory, of the top 200 global brands for 2016 – 79 were from the United States. How many were Australian? Only 4 of the top 200 global brands in 2016 were from Australia – ANZ, Commonwealth Bank, Telstra and Woolworths.
Unfortunately, our Australian business community remains behind our American counterparts in terms of using drop shipping for the online marketplace. Americans created the Internet and understand its nuts and bolts. So, is drop shipping a key secret of American online brand success?
What Are the Yankee Secrets to Success?
Online customers want affordability, variety and fast delivery, according to Amazon CEO Jeff Bezos. How can your small firm compete with the big names? Drop shipping gives you a chance.
You can keep costs low with drop shipping. You don’t need to have extensive shipping supplies stored in your home, shop or warehouse. Lower prices will attract more shoppers.
Tip #1: No Money Was Ever Made From Empty Shelves!
You can list more merchandise in your product catalog with dropshipping. An empty website won’t generate any sales. With dropshipping, you can list merchandise that is still with the wholesaler, but you have the right to sell.
And speed kills! Dropshipping allows you to be as fast as your competitors. The modern consumer expects to receive his merchandise in real-time. Once you satisfy the customer, you can check off the fourth stage from your list.
Just as science proves truth with replication – dropshipping can help solidify your brand value proposition with consistent order fulfillment. The reliable brand stays in the front of the consumer’s consciousness.
Learn from the leaders in eCommerce who already use drop shipping: The Americans. Build your own Australian brand by using the best online practices.
One thing that is a definite advantage for any Australians looking at starting at a drop shipping business, is that we can quite easily replicate the success of drop shipping ecommerce from following exaclty what has been done in America. Today there are no borders or boundarie as to how you can succeed in ecommerce. Australians are drop shipping products for busines owners in USA, UK, Europe and Asia, and vice versa, Australians are also using drop shippers from all over the world, particulairly America and Asia to fulfill their online store orders.
5. Raising Capital
Capital is one of the essential inputs of production. The online marketplace allows you to sell more merchandise at a faster rate with a lower initial investment. Eventually, you might need a cash infusion to help with purchasing more raw materials, adding staff or renting a larger shop.
You might need to apply for financing from a relative, credit union, building society, mutual bank or traditional bank. These financial institutions will review your official business plan, banking account records and tax receipts. Lenders are searching for a consistent revenue stream (free cash flow).
Tip #2: Don’t grow too fast.
The banks want you to have a low overhead, so you will earn enough profits to repay the loan. Banks will give you money when they recognize your business plan viability. You have reached the fifth stage when your business can fulfill orders without breaking the bank.
Don’t add overhead that is unnecessary. Dropshipping allows you to remain lean and mean, so you don’t eat up valuable cash flow.
6. Product Line Extension
How will you extend your product line without cannibalizing your own brand? This can be a tricky proposition as small Australian companies plan on taking the next step. They don’t want to stumble. What are similar merchandise offerings that could be used to build up your brand?
The clothing, sporting goods and automotive industries have numerous accessories available. A dress can be complemented easily with a necklace, belt, shoes, lip stick and perfume. You will need to discern which market niche is filled by your product line.
Tip #3: Sell your own branded merchandise and drop ship supplemental products.
For better or worse, product lines can change in an instant – just ask the professionals of the fashion industry about their seasons. With drop shipping, you can more easily change your product mix to handle any exigency. You can also be pro-active and experiment with cutting-edge products. Being the “first mover” allows you to gain industry leverage, power and control.
Drop shipping is also ideal for preparing for any economic downturns. Drop shipping allows you to be more agile and create another tier of products: those we sell, but don’t have on-site.
Normally, that would be a “no sale” because customers could simply contact your competitor; but with drop ship order fulfillment, you can send the goods directly from the wholesaler. Use your small size, agility and flexibility to your advantage to reach the sixth stage. Everyone wins with dropshipping in Australia.
Dropshipping allows businesses to increase their cross-selling opportunities. Sell a trendy high-scale brand as an accessory, using wholesaler dropshipping.
7. Full Maturity
The fully developed brand has an extensive product line, along with stable cash flow. Customers understand what to expect from the brand (i.e. work boots that last ten years long). It also has a variety of models from which to choose.
Tip #4: Don’t put all your eggs in one basket.
When your customers can count on your brand for delivering a full line of products, then you have reached the seventh stage of full maturity. You could continue to keep your shop small, providing a more personalized touch. This is the choice of many boutique luxury brands who serve an exclusive clientele.
Leverage Brand Value to Increase Market Share.
Opening branches is another option for a mature brand. Control your destiny by adding dropshipping to your tool chest.
You can become a fully mature brand, solving any customer problems with dropshipping. Dropshipping fills any gaps, you might have in your small business plan.
Fill in Gaps Seamlessly
Don’t try to be everything to everybody. American brands are well-known around the world because they satisfy very specific markets niches. Australian brands have the ability to grow in stature, prestige and popularity, as long as they follow best industry practices.
The beauty of online brands is that they can remain small, while delivering great value. The human mind can develop absolutely earth-shattering ideas. Dropshipping allows you to increase customer satisfaction, by offering an appealing product mix and fast, affordable order fulfillment.
Catapult your Australian brand to the highest mountain by playing your cards right. Remain focused on your core competency and allow the Australian dropshippers to fill in any of your strategic gaps. Dropshipping is the last piece of the puzzle – add drop shipping to create a well-recognized brand.