13 Aug mid
Abstract
Startup online ecommerce websites have developed a great boom during the last few years appearing diverse with different ways of marketing and strategies. This study will analyze how online ecommerce websites fulfill orders with no inventory and limited budget.
The objective of this project is to provide a method to start an online startup platform with no inventory and limited budget. The main resource to develop a company with this characteristic is drop-shipping method. Many online stores use this procedure, but there are a lot of marketing strategies to make a company profitable.
Content
An online platform must offer an impressive first impression of what a business consists of. The company is a young creation, and you, as an entrepreneur, are at the beginning of its development. Startup companies offer a product or services that is not currently being offered elsewhere in the market, or that the founders believe is being offered in an inferior manner in order to dominate the industry. A large market study must be carried out to analyse product demands to determine target audience and marketing strategies.
Each order consists of customer’s request based on items quantity and price. There are various types of orders based on their characteristics. There are FI, FO, E-commerce, to bring a real example of a specific company but in this case, we will refer to the FO that means Fulfillment Order.
Online stores, in addition to establishing their privacy policy regarding the way of processing the orders, must also make their position clear on product return policy and provide customer service in order to fulfill customer’s expectations .
Not having inventory when it comes to online stores means that there are no physical products in stock, all items are stored in fulfillment center or with the company that distributes or produces them from which they are sent to where the customer has defined. This process is called dropshipping and the companies that provide these services are dropshippers. Ecommerce platforms such as shopify, opencart, bigcommerce and many others work as intermediaries between producers and consumers of products. Drop Shipping method will allow companies to fulfill customer’s orders with no physical inventory in their fulfillment center. This will open the door to establish a solid relationship between companies and consumers. However profit margins due to the cost of the process are not as high as keeping inventory in stock but it’s definitely a solid ground to test the market and getting to know the target audience. Establishing a company that competes in this regard with those that are established, lies within grasp of how innovative marketing plans are and the products that are being offered.
On a different note, we can take a look at dropshipping not in large scale to better understand the concept. As an example the art industry and online galleries are more personalized when it comes to dropshipping. If we see that in Shopify or Amazon the volume of products and the diversity of them is very wide in art it works differently. In art, there are a lot of products but they all have the same nature and have very few objectives. Taking as an example 3 companies that develop a fulfillment system with no inventory are Artsy, Satchi, and Artprice. These companies connect works of art with buyers. How ever their target market is well defined. They have a membershisp set for artists, collectors and art galleries that want to offer their work through this database. In some cases, they charge a commission and in others not depending on the membership package you select.
The inventory fulfillment for online startup stores topic is vast and has been developed globally in recent years. We are considering to address this topic on how it works when it comes to visual arts; it may not be a topic to be addressed in terms of its concept since when we think of online startup stores with no inventory, the creation of an online platform comes to mind where we offer wholesale products as retailers. Entering much more into the theme of an online art gallery would be to start a project without any inventory. It can be far fetched, but in essence, in physical art galleries with stock, this has always been present. To unleash this issue and demonstrate a hypothesis on the subject, we will analyze three aspects of how art galleries fulfill orders with no inventory. Landing how this theme works in visual arts, I would like to express that the method for fulfillment orders with no inventory is dropshipping.
On the contrary when it comes to other industries they may receive many orders which can’t be processed manually. That’s when all the backend integration are implemented and applications are installed in order to make this process as smooth as possible and fulfill as many as thousands of orders per hour. When we go in depth in drop shipping and ecommerce platforms there’s realization that some dropshipper’s integrations only work with certain ecommerce platform and provide their API’s in different forms to be added on specific “online carts”.
According to bigcommerce which is one of the major ecommerce platforms these are the list of most dropshipping items in the industry at the moment.
Clothing and apparel
Shoes
Jewelry
Furniture
Beauty and cosmetics
Home decor
Electronics
Toys
Here is the list of best dropshipping suppliers according to bigocmmerce
Dropship
The dropship method in e-commerce business is when a customer places an order from your website but the vendor or distributor is responsible for shipping the product to the customer without labeling their own brand on the package. An example of this is when an online store is selling different products, one of them is coasters. They are selling this product because in the summer is a highly demanded product, especially in the beach area due to a lot of bars, are in the area that is opened beyond its regular hours. They also can customize them honoring and special event or promotion is running during the summer.
Stock inventory
Taking the fine arts again as an example, stock inventory is known as all the artworks an art gallery has physically in its space. The gallery can sell them or consign them. In the case of different companies like Walmart or Publix, they have department stores that contain the products. Both types of businesses have incorporated e-commerce into their sales structure.
Online Art Galleries
The first direction that can work is for a start-up business with little budget. The best way to start this is online. Create a website where you make an agreement with various artists or manufacturers or artisans in whom as a retailer you will accept orders from your customers and the artisans are the ones who send their works to customers appearing as sold by your company. In this way, you do not have to have a physical space with an inventory of the works in which you have to pay a monthly payment for the rent plus everything that entails the different fees for the land, taxes, and electricity. In the event that this business is profitable, it could become a physical gallery with consignment contracts with artists and fixed works.
The second direction in which it can work is for an established gallery to decide to detract from its inventory and start working fulfillment orders with the drop shipping method. An example of this is an establishment gallery that its main artist is decreasing its market; the best solution is to launch a limited edition prints of original works. For this, the company establishes a contract with a Publisher or a printing production company. The gallery receives the order from a specific customer or from another retail art gallery. Once the order is received, the Publisher is ordered to proceed with the printing of the pieces and send them to the customer who ordered the piece.
Online auctions
Online auctions work for a specified period where a gallery or auction house launches or announces its project in a certain period. It could be between seven days to 45 days. In this type of online sale, the works themselves do not need to be in the auction or gallery. They are in the hands of collectors, institutions, or other parties that have already signed an agreement with the institution that makes the sale. During the sale celebration, clients are placing bids. The specialists on the charge may have strong knowledge of each artwork because they are dealing with a potential client or buyer that hasn’t seen the artwork physically. All the pieces must be accompanied by images, provenance, details about previous exhibitions, and literature. Clients like to know about the artworks.
Art Database Sites
Art Databases Sites are virtual platforms where users can have access to information on sales and works available from a certain artist. Very common sites that work as a database are Artprice, Saatchi Art, and Artsy. You have to pay a subscription to have access to its information. These sites also do not work with inventories; they connect the galleries with collectors or art institutions like museums or art foundations. So if they receive an order from a customer, they let the gallery know that it has the piece that sends it directly to that customer charging a commission for it. This helps a lot because there is much more control of art dealers, and through blogs, there can be interpretations and comments regarding a certain work and its history. It also works for emerging artists that can’t find a gallery that represents them.
References
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