Drop shipping on channels like Amazon or eBay is all about automation. Most of the time, profit margins are small. Therefore, you need a higher volume of sales to make a living. However, with the abundance of technology at hand, it’s just a matter of the right software.
Although counter-intuitive, the most helpful solution while drop shipping on Amazon, eBay or some other sales channel will be inventory management software. Even though you’re not going to have any inventory at all.
What you’re looking for is a unified solution. One, that grants control over all aspects of your drop shipping business. Even if the products don’t overlap across sales platforms, it gets complicated real quick. In short, inventory management software is unavoidable.
However, there’s no reason it should be avoided in the first place. The tools packed into software, like Multiorders, are useful whether you own inventory or drop ship.
Multiorders software allows you to add as many integrations as you need. For a drop shipping business to get rolling, it’s advantageous to make your products visible. Meaning, placed on as many virtual shelves as possible. Amazon and eBay is often enough, but you can achieve greater results with more channels.
If drop shipping is your preferred option due to lack of storage, let us introduce FBA to you. It’s a service by Amazon that handles, stores, packs and ships your products for you. Also, you can use these services with any sales channel, not just Amazon.
Certainly, this means you’d have to buy goods, own inventory and pay for storage as well as other Amazon fees. However, if you have no problem investing capital, it’s certainly something you should look into.
As a side note, Multiorders software works seamlessly with FBA.
It’s important to track performance for every business. However, with drop shipping, it’s even more critical. Since the margins are often much lower, it’s essential to pay close and constant attention to performance. To put shortly, it will determine how profitable your business is.
Typical to first time entrepreneurs, Max and I were focused on growing the business. Listing new products, meeting new suppliers and on-boarding new employees. While running forward, we neglected our accounting. That meant that we didn’t have a clear view of the monthly cash flow. We had to learn the lesson here the hardest way there is, when we had to let go of half of our 14 employees because our cash flow wasn’t sufficient to sustain such a team. At such a small company that literally meant having to fire good friends and great employees. – Victor Levitin
While analysing performance you can find great business opportunities. For example, you experience high demand for garden equipment in, say, Germany. Now, you expand on that. Be it another drop ship store, or one with owned inventory.
All in all, the best software to use when drop shipping on Amazon, eBay or any other sales channel is inventory management software like Multiorders. Consider it the link that connects everything together. A tool that provides you with one dashboard to control your business entirely. Once you have that in place, you can start connecting more dots to expand your business how you see fit.
Useful to know: you can try Multiorders for free. The two-week trial should be more than enough to see if it fits your business. We’re confident it will.