Here, we will be discussing private label dropshipping coffee businesses you can start.
Opening an online coffee store is one thing. Choosing a preferred and reliable operational model is another.
We are more interested in the “how” so, read on as we discuss all the basics you need to know about his business.
How Dropshipping Coffee Works
Opening an online dropshipping store means you’ll be working with partners. These partners are made up of your coffee suppliers. Their services are crucial to the success of your operation.
Your online coffee store is the market place where where buyers go to find what they need.
However, you won’t be keeping physical inventory of coffee. These are held by suppliers and shipped immediately an order or purchase is made by customers.
Another benefit with this model of coffee online store is that shipping costs are also borne by the suppliers. You only provide the platform for these coffee products to be marketed.
How you Earn Money
Lest we leave out an important detail of this business, earning on your coffee online store is also easy. You enter into an agreement with coffee suppliers who supply wholesale to you. What this means is that you get to sell retail to customers. The difference between the wholesale and retail price is yours.
Let’s put things into perspective. A customer visits your coffee online store and makes an order. The retail price for coffee you attached is $100. Now, you need to forward this order to your supplier. You have a wholesale price agreement with your supplier(s) who sells at $50.
Once you pay the $50, the coffee gets shipped by the supplier to the customer. As a result, you are left with a profit of $50 from this transaction.
Choosing an E Commerce Platform
One of the most important decisions you need to make is choosing an online platform that fits your needs. This can be quite challenging as all of these platforms make huge promises. However, you’ll need to go through as many as possible to make the right decision.
An e-commerce platform is simply a software that helps you build your coffee online store. All e-commerce software come with all the tools needed to get the job done. What more? You won’t have to sweat it out as these have easy to use features.
Most of the things you’ll need to do is just to drag and drop.
Some E-Commerce Platforms to Use
The following are some of the best e-commerce platforms you can use. These are proven platforms with enhanced user friendly features. They include Wix, BigCommerce, SiteBuilder, Shopify and Squarespace.
Others are Volusion, OpenCart, Zen Cart and Magento. These are only a few and among the most popular platforms to use.
Using any of these platforms for your private label coffee online store will attract fees. However, certain e-commerce platforms may provide trial periods before you begin to pay.
Sort Out All Private Label Requirements
When coffee is being processed and packaged for sale, it won’t bear the name of the manufacturer. In other words, it is being packaged to be sold under the name of the retailer.
Different suppliers will make their demands but one thing is constant; coffee logos or product images must be supplied by the retailer.
Most suppliers have their product images which retailers are restricted from using. This is based on the terms of agreement. You’ll need to find out what works best for your situation.
Get this aspect of your business sorted out to allow for smooth operations.
Things to Discuss With Your Coffee Suppliers
Suppliers play a significant role in the smooth operation of an online coffee store. Therefore, you’ll need to discuss exhaustively with them on important areas of the partnership. Having these fully sorted out will allow for greater ease of transaction. This also impacts positively on the business.
The following are important areas to focus on;
Some suppliers will charge dropshipping coffee stores a fee for each product sold. In contrast, there are others who wouldn’t. For those who do charge a fee, such fees will start from $1.00 or more depending on existing terms.
This is an important piece of information you need to find out as it could impact on profitability.
While a lot of suppliers will operate a wholesale pricing model as an incentive, others won’t. You wouldn’t want to do business with a supplier who does not offer you this model of pricing. Which is why you need to raise the issue when discussing with one.
For some suppliers, this won’t be necessary as their terms are clear enough and boldly stated on their websites.
The easy way out will be to focus only on those suppliers with the best pricing incentive. This adds up significantly to the profits you make at the end of the day.
Find Out Your Supplier’s Minimum Order Requirements
Minimum orders are a basic part of operating a coffee dropshipping business. A customer making a purchase will have to wait or meet up the minimum order requirement before a supplier ships. As a retailer, you have to find out if a supplier’s arrangement is favorable to your operations.
If it is not, simply find the next supplier and discuss the minimum order terms.
To choose a coffee supplier, attention must be paid to other operational areas. These include monthly fees, label terms, printing and startup fees among others. Not all suppliers require a monthly fee. Find out all the terms and conditions set forth by your supplier.
That way, your private label dropshipping business will be well on its way to being a reality.
We’ve showed you how to establish an private label dropshipping business. The steps given above are crucial to achieving your goal. Following the above procedure significantly limits your chances of making mistakes.