Dropshipping is a business model that allows you to run your business without having to hold inventory. In dropshipping a business person finds a list of suppliers for a product and engages them leaving the responsibility of packaging and shipping of the product on the wholesaler.
Recenlty, dropshipping become more and more popular in southeast Asia countries, especially in Thailand. After read this article, I hope you can know about dropshipping Thailand.
The Popularity of Dropshipping Thailand
As we have discovered, dropshipping is an easy and cheap way to start a business hence most people tend to prefer it over other methods of business.
The dropshipping business has recently become popular among very many countries in the world and Thailand has not been left behind. Thailand is a country in South East Asia that has a population of 69,788,785 million people as of June 2020 based on a UN report.
Of this population, there are over 50 million internet users in Thailand today. This has therefore led to the growth of the E-commerce platform in the country.
The introduction of 5G networks is also expected to improve the interaction between buyers and sellers online which will make the online market place more efficient.
Dropshipping is one of the business models that is gaining popularity among most business people in Thailand. The closeness of the country to the Chinese market which is among the leading markets using the dropshipping model has greatly contributed to the inception of this model of doing business.
Even though it is gaining popularity dropshipping has some cons, as any other business model would have some of which may include:
High Market Competition
If you are just starting, you will have to contend with a wide range of competition who will be selling the same product as you.
No Control Over the Supply Chain
Most of the dropshipping business is done by the supplier hence as a retailer you have little control over the operations that take place about when and how the product will reach your customer.
Low-profit Margins
Since you do not hold inventory for the products you sell the profit margins from the business and the overhead is usually low. The less money you put the less you will get.
Top 5 Wholesale Platforms in Southeast Asia
The wholesale business is among the top business models that operate in South East Asia. Some of the tope wholesale websites include:
Nihaojewelry.com
With a customer rating of 4.5 out of 5 Nihaojewelry is one of the best wholesale jewelry websites in the world. The site is preferred by a lot of businesses from around the world. The company boasts of a range of products to choose from with new products being added daily.
Nihaojewelry is a trusted drop shipping service that is used by a wide selection of business people, the customer care services are efficient and you can get help in case you need it anytime.
The shipping services offered are efficient as the product will be shipped on time and without any manufacturing errors. Both products sold are of good quality cheap making it easy for you to make profits easily.
This is one of the sites I would highly recommend for wholesale services.
Aliexpress.com
Aliexpress is one of the world’s leading platforms for online buying and selling. The site is one of the most popular sites that offer a one-stop sourcing platform with millions of products being sold. The main aim of the company is to ensure that they develop services that will help you do business.
DHgate.com
DHgate is a Chinese B2B website, with a huge variety of products that facilitates the sale of products from suppliers to retailers. DHgate offers a buyer protection plan and a secure refund policy with a guarantee of express shipping of products.
The site may offer a lot of options to choose from and one can easily get access to a list of suppliers as well.
Chinabrands.com
Chinabrands is a dropshipping and distributing platform that offers a selection of products sourced in the Chinese markets to choose from.
The platform has long helped a lot of sellers to establish their business over the years with a customer base of over 3000 suppliers.
Chinabrands offers cross border E-commerce solutions across online sellers from all around the world. The site is easy to use and the products are sold at affordable rates.
Orbelo.com
The site is quick and easy to set up and contains a fully hosted product site with dropshipping options from suppliers all over China. The site allows you to do business with verified Orbelo suppliers and Aliexpress suppliers.
This merge offers a wide variety of products to choose from and a long list of suppliers you can work with.
How to Start a Dropshipping Business for Beginners?
Dropshipping like any other business can be both profitable or disastrous if you do not know the right steps you can take to start. Some of the steps that may help you as a newcomer in the business include:
Identify a Product Niche
This is the first step to starting an online dropshipping business. You need to identify a product that you can easily sell in the market and one that you are passionate and knowledgeable about.
Conduct Research
Research will help you identify the competition and the current market trends. This will help you in setting up market prices and know the product the customer will prefer.
Identify a Supplier
Identifying a supplier is the most critical process in starting a dropshipping business as the supplier is responsible for almost all of your operations. Choosing a reliable supplier will involve a lot of research and a thorough vetting of selected suppliers.
Build Your Website
A website is important as it allows you to create your brand which customers can easily relate to.
Market Your Products
In the dropshipping business your customer base will determine your profit margins. The more the customers the higher the profits. Ensure that your marketing plan will lead to attracting more customers to succeed.
FAQs about Dropshipping in Thailand
Is dropshipping popular in Thailand?
Being an Asian country, Thailand has seen a high rise in dropshipping as a business model.
Is dropshipping legal in Thailand?
Yes, dropshipping is legal as it is a business model used for E-commerce.
Is dropshipping profitable?
The profits you can get from dropshipping depend on your customer base hence the more the customers the more the profit.
Is dropshipping easy to start?
With a lot of research, you can easily find suppliers who you can use for your business. The fact that you do not need to hold inventory makes it an easy and cost-effective business to do.
Conclusion
As with any other business, your dropshipping business will succeed according to the amount of research and work you put in. Though most people refer to it as passive income a lot of research has to go into setting up the business if you want to succeed.
The ability for you to sell a product without holding any inventory is a very attractive option of doing business and that is the reason dropshipping is growing as a preferred business model.
For a dropshipper in Thailand it is important that you study the market trends in the country so that you can know which product you can offer that will give you profits.
