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DROPSHIPPING
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 GROUP MEMBERS:

Malaika Khan SP-2020-BBA-009

Mehreen Ijaz SP-2020-BBA-

016
Hira Waseem SP-2020-BBA-
023
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 DROP SHIPPING:

Drop shipping is an e-commerce model where a store sells products

without holding inventory. When a customer orders, the store buys
the item from a third-party supplier that ships it directly to the buyer.

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 DROP
SHIPPING
PROCESS:

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POPULAR PLATFORM OF DROP SHIPPING:

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CHALLENGES OF DROP SHIPPING:

Inventory
Increased
management and
competition
stockouts

Reliance on suppliers
Customer service and
and fulfillment
returns
partners

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FINDING RELIABLE SUPPLIER:

Researching and vetting potential suppliers

Evaluating product quality and reliability

Negotiating favorable terms and pricing

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SELECTING PROFITABLE PRODUCTS:

 Identifying profitable niches and trending products.

 Conducting market research and competitor analysis.
 Considering product demand, pricing, and margins.

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SETTTING UP AN ECOMMERCE
STORE:

 Choosing a platform (e.g., Shopify, WooCommerce)

 Designing an attractive and user-friendly website
 Optimizing product listings and descriptions

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MARETING AND CUSTOMER
ACQUISITION:

 Creating a digital marketing strategy

 Utilizing social media advertising
 Search engine optimization (SEO) techniques
 Influencer partnerships and collaborations

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ORDER FULFILLMENT AND SHIPPING:

 Automating order processing and tracking

 Managing inventory and stock levels
 Choosing shipping carriers and optimizing shipping costs

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CUSTOMER SERVICE AND RETURN:

 Providing timely and efficient customer support

 Handling returns and exchanges
 Maintaining customer satisfaction and loyalty

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 FINANCIAL MANAGEMENT AND
PROFITABILITY:

Tracking expenses and revenue

Pricing strategies and profit margins
Managing cash flow and expenses

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 Low startup cost:

• Traditional eCommerce stores often require

significant investments in stock, employees and
shipping infrastructure.

No inventory management:
ADVANTAGES
• Your supplier will handle product creation and
OF inventory management, including shipping and
handling.
DROP SHIPPING: Wide product selection:

• You can experiment with multiple niches and trends

without financial risk.

Flexibility and scalability:

• You can easily expand or pivot your product offerings

based on customer preferences or market trends.
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 DISADVANTAGES:
Low profit margins:

• When you start with cold ads, the algorithm needs time to target the right audience, which can be
challenging and expensive.

Inventory and supplier issues:

• Dropshipping businesses rely on suppliers, which introduces variables you can’t control.

Limited control over shipping:

• When sourcing products from China. Shipping by freight can be expensive, so you’ll likely use sea
shipping, which typically takes 14+ days.

Customer service challenges:

• Long wait times, damaged or incorrect products and other unforeseen issues can lead to unhappy customers.
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TIPS FOR SUCCESSFUL DROPSHIPPING:

Choose the right products

Select a platform with reliable, fast hosting

Find dependable suppliers

Create an appealing online store

Craft effective marketing strategies

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