Dropshipping Business in Malaysia - 5

Why Start A Dropshipping Business in Malaysia 2021

WHY START A DROPSHIPPING BUSINESS IN MALAYSIA 2021?

Running a dropshipping business is an excellent first step on the ladder into entrepreneurship. You’ll have the ability to sell any items to clients, set your own item prices, and promote your own brand. You don’t even have to purchase inventory until it’s offered to a genuine customer. If you’re ready to focus and work on this business, you can build your online business successfully.

What Is E-Commerce Dropship Model?

In the E-commerce world, there are many business models available online. Dropshipping is one of the online business models which is very “Hot” In the market right now. Dropshipping is an ongoing Business Model used to run your online shop without ever keeping any inventory.

Once you have sold any items to your customer, your supplier will directly ship the items from their warehouse to your customers.  Thus, you will never need to get worried about the item packaging, storing, logistics, or shipping your items.

How does the Dropship Model work?

In the dropship business model, there are 3 key main roles which are

  1. Supplier/Manufacturer
  2. Online Seller (You)
  3. Buyer/Customers

Supplier/Manufacturer Roles:

Supplier/Manufacturer’s Roles is Creating products, transporting inventory, shipping items to the buyer on behalf of the seller, returning defective items, and restocking the items. The manufacturer supplies the items to the seller at a very low cost, and they will bear the inventory risk.

Online Seller (You):

Online Seller’s roles are selling the supplier/manufacturer’s items on own website or own online store under own brand. Sellers are required to promote the products and mainly through online marketing. Besides, Seller also needs to handle customer requests and complaints.

Buyer/Customers

Buyer/Customer’s Roles is purchasing any items directly from the seller’s web-store, the buyer will make full payment through online and they will contact the seller if they have any special request or problem on the products.

Step 1: You need to list the supplier’s product on your online store for the customer to purchase.

Step 2: The customer purchases items from your online store & make payment through your online store.

Step 3: Your online store will automatically send the confirm order to your supplier, and your supplier will prepare all the items and logistics.

Step 4: Your supplier will deliver the items directly to your customer from their warehouse.

6 Reason for Start a Dropshipping Business in Malaysia

1. Start with Low Capital

Most likely the largest benefit to dropshipping is that it’s possible to start an eCommerce online store without having to invest high capital in inventory beforehand. If you open up a traditional physical shop and you are required to tie-up with many manufacturer suppliers with huge capital purchasing inventory into your shop.

With this dropshipping model, you do not need to buy the items beforehand unless you have already sold any items and also have been paid by the client. Without significant up-entrance inventory investments, it’s feasible to begin sourcing products and start an effective dropshipping business with very low capital. And because you’re not focused on any inventory purchased in advance selling-through, like in a normal retail business, there’s much less risk involved with starting a dropshipping online business.

2. Easy to start-up

Operating an eCommerce online store is a lot easier when you do not have to keep any physical items. With this dropshipping business models, you no need to worry about,

  • Packaging and delivery your orders to the customer
  • Managing or spending money on a warehouse rental
  • Item’s Tracking inventory
  • Managing stock level and order products
  • Handling items returns

3. Flexible – Work AnyTime AnyWhere

In this high technology Internet world right now, it is very simple to build a web-store and offer products on the internet. Basically, you don’t actually need a physical shop. It’s very flexible to work on this drop shipping online business, you can work anywhere and anytime as you like. As long as you have a device with an internet connection, then you can start work and manage your online store.

4. Wide Range of Products Selections

Since you no need to pre-purchase the items you offer on your online store, you can provide a wide range of items to your potential clients. If you found suppliers got any new items, you can list it available on your online store with no additional cost and start to promote these new items.

What items you can sell online? Example in these categories;

  • Women’s Fashion
  • Men’s Fashion
  • Consumer Electronics
  • Computer & Office Electronics
  • Mobile Phone Accessories
  • Bags & Shoes
  • Toys, Kids & Babies
  • Jewelry & Watches
  • Outdoor Fun & Sports
  • Automobiles & Motorcycles
  • Beauty, Health & Hair
  • Home, Pet & Appliances
  • Home Improvement & Tools
  • And many more…

5. Easy to Scale

In a traditional retail business with a physical store, if you run a sales campaign and able to increase 5x times more sales order in a day, you normally need to do 5x times more work. By leveraging dropshipping suppliers, this 5x time extra work will fully handle by the dropshipping suppliers. Thus, these dropship models will allow you to scale up your online business easily with fewer pains and less work.

6. Low Monthly Expenses to Maintain

To maintain your dropship business, you are required to spend very low monthly expenses to maintain your dropship business. It’s because you don’t have to pre-order stock, no need managing a warehouse, no need managing staff, or even no need to pay the physical store’s rental fees. Therefore, your overhead expenditures are very low. What are the monthly expenses that you required to maintain your dropship business? The answer is, just a hosting and domain fees to maintain your website. Besides, recurring advertisement fees/ marketing fees may help you to start your online store in order to increase your website traffic and let more people know your website and brand are exist in the market.

Actually, many successful drop ship businesses are start work as home-based businesses, it’s will keep a very low monthly expense. As your business grow biggest, these costs will probably increase but will end up being low in comparison to those traditional retail businesses with a physical store.

The conclusion is Dropshipping Business is still workable in Malaysia

If you are looking for how to start a dropshipping business, Sifuecom is providing a full EDP Training Course to teach you how to build a dropshipping eCommerce website and strategic. Let’s keep in touch with us.

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