Many of my customers start their business by dropshipping at first, which is a way accepted by them in online small businesses: There is no need to pre-store the goods, which means, the early investment is less. And they only need to sell products, someone will help to send the goods to their customers.
But over time, 3 shortcomings of dropshipping will be gradually found.
- Product style assimilation. While you are selling certain styles of jewelry, others are selling the same styles of products.
- High cost squeezes your profit margin. Cause you invest little and undertake low risk, you couldn’t earn much. And that’s true for all businesses.
- You can’t control the quality of goods which is from dropshipping. Because most of the dropshipping companies are middlemen and they will take goods from different factories. Then the quality of goods is different each time, which will easily induce losing your customers.
We have a client who does business on Amazon. At first, she chose dropshipping to send goods. While in one day, there are three bad reviews complaining that the products are inconsistent with the picture and they think she is dishonest.
You know, the ranking mechanism of Amazon will take product reviews into consideration. Even if you sell at a low price or spend a lot of money on advertising, if your review rating is lower than 4.0 (out of 5 stars), then your ranking will still go down. If there are too many bad reviews, your product listing will be forced off the shelves. So then my client had to give up that product. What a pity!
So, if you want to do well in the fashion jewelry business for the long term and have a good profit margin, you have to develop novel designs and gradually create your own brand. Wholesaling from Chinese factories and customizing exquisite packaging to increase the premium of your products are things that dropshipping can never do.
When it comes to wholesale from China, let’s take the Chinese B2B website Jewelrykg as an example.
As the first company to propose pricing by weight (Kg), jewelrykg has a more obvious sales advantage in the market because they are the first to propose a new model of wholesale jewelry and put it into practice:
1. The product line is affluent, and the product styles per kilogram are diversified and suitable for personal use or wholesale sales.
2. All the products sold by kilograms have independent packaging, not bulk jewelry on the market, and do not have independent packaging. They are all defective products. It will not affect the customer's secondary sales or gift giving.
3. The quality of the products is good. The products sold by kilograms come from jewelry factories, which are packaged and sold at low prices for the rapid return of cash, or some products that have broken contracts. So the product is by no means inferior, and every product has integrity.
4. Complete after-sales system.
5. The products sold by kilograms are sent in random styles, and every purchase is full of surprises. The buyer can even make a wish to get her specified product included in the package sold by the pound.
