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Dropshipping: A Guide to Optimizing Ecommerce

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Page 1: Dropshipping: A Guide to Optimizing Ecommerce
Page 2: Dropshipping: A Guide to Optimizing Ecommerce

Tony LoyaTony has been at Volusion for over 3 years and currently oversees the Business Development Solution Partnership

Program. He has worked extensively with Volusion merchants and has an in-depth understanding of the

platform.

Meet Today’s Presenters

Josh SummerhaysJosh has been the Marketing Director at Doba for the

past four years. When he’s not optimizing a campaign or creating new resources to help Doba customers, Josh

likes to tinker with a variety of side projects from gardening to writing to working with his wife on building

a side business.

Page 3: Dropshipping: A Guide to Optimizing Ecommerce

Agenda• Intro to dropshipping

• Advantages and disadvantages

• Dropshipping strategies

• Dropshipping with Volusion

• Q&A

Page 4: Dropshipping: A Guide to Optimizing Ecommerce

WHAT IS DROPSHIPPINGProduct sourcing is a game of Hot Potato

Page 5: Dropshipping: A Guide to Optimizing Ecommerce

Traditional product sourcingSupplier

• Sells bulk inventory to retailers

• Lower risk = lower wholesale price

• Owns & manages the inventory

• Fulfills individual orders to customers

• Bears risk of illiquid inventory to get better pricing (holds the Hot Potato)

Retailer

Page 6: Dropshipping: A Guide to Optimizing Ecommerce

Dropshipping reverses the conceptRetailer• Markets/sells products

• Sends orders to supplier for direct fulfillment to customers

• Pays higher unit cost

• Owns & manages inventory

• Fulfills individual orders to customers (placed by the retailer)

• Assumes inventory risk (Hot Potato)

Supplier

Page 7: Dropshipping: A Guide to Optimizing Ecommerce

Advantages of Dropshipping• Lower overhead for retailer

• Lower ongoing risk for retailer

• Simplified operations

• Increased agility and flexibility

Page 8: Dropshipping: A Guide to Optimizing Ecommerce

Disadvantages of Dropshipping• Competition

• Lower margins (typically)

• Less control of order fulfillment

Page 9: Dropshipping: A Guide to Optimizing Ecommerce

Who uses dropshipping?

Page 10: Dropshipping: A Guide to Optimizing Ecommerce

DROPSHIPPING STRATEGIESConsider your retail model and lifecycle stage

Page 11: Dropshipping: A Guide to Optimizing Ecommerce

What type of retailer are you?

Category retailer• Sell related products from

3rd party suppliers

• Add value as curator: details, reviews, recommendations, customer service

Page 12: Dropshipping: A Guide to Optimizing Ecommerce

Your opportunityCategory retailer• Rapid market testing of

new products

• Quick expansion of long-tail assortment

Page 13: Dropshipping: A Guide to Optimizing Ecommerce

What type of retailer are you?Brand Retailer• Unique products, own the

brand

• Direct channel, but may distribute to partners

• Add value by controlling costs, passing savings to customers, delivering brand-consistent

Page 14: Dropshipping: A Guide to Optimizing Ecommerce

Your opportunityVertically integrated• Test-market related products with comparable brand equity to

your core assortment

Page 15: Dropshipping: A Guide to Optimizing Ecommerce

Other use cases for retailers• Stay profitable through entire product lifecycle

• Seasonal shifts in demand

Page 16: Dropshipping: A Guide to Optimizing Ecommerce

Interested in learning more?

Visit our website to download The Retailer’s Guide to Dropshipping

to help you get started!

Page 17: Dropshipping: A Guide to Optimizing Ecommerce

Volusion and Doba•Doba products live alongside

your Volusion inventory•Store management is easier

when you don’t have to fulfill products

• Full control over Doba products including price and shipping

• No special tools or features

Page 18: Dropshipping: A Guide to Optimizing Ecommerce

Volusion and Doba - PricePrice

•Product price

•Sale price

•List price

Doba

•Offers suggestions

•Percentage markup

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Volusion and Doba - SEOOptimize for search engines

•Title

•Description

•Keywords

Product descriptions

•Unique content

Page 20: Dropshipping: A Guide to Optimizing Ecommerce

Volusion and Doba - ShippingShipping options

•Fixed

•Free shipping

•Live rates

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• Knowledge base article

• Chat, call or email our team - Volusion Support

• A Guide to Dropshipping ft. Doba and Volusion

Resources to get you started

Page 22: Dropshipping: A Guide to Optimizing Ecommerce

Thank you! Any questions?