January 18, 2020
Dropshipping in 2020: The Tan Brother’s Hybrid Method

Dropshipping in 2020: The Tan Brother’s Hybrid Method


There’s a lot of definition to
dropshipping, but I think dropshipping is here to stay depending on
how you approach this business. Recently, like probably in past few years is kind of like over stocking in products. Okay.
So I mean that is why we still like dropshipping’s business model.
I mean, there’s a lot of definition to dropshipping but I think dropshipping is here to stay depending on how you approach
this business. I mean, it doesn’t matter if you’re doing dropshipping or brands. It’s still shipping from China or US. It’s all about
customer support, experience, and everything. So one thing we did last time
was like, we’re really confident in one product and probably, prior to Chinese New Year.
So we kind of wanted to give like a super fast shipping time.
So we stocked about 500,000 worth of one product. And after
Chinese New Year, like probably a lot of competitors, a lot of spies, and everything.
So the product sales just dipped. It took us a very, very long time to
sell all our inventory. So one thing we’re very careful with
nowadays is we don’t really over stock way too much.
Our inventory forecasts is done probably more accurately nowadays compared to the
younger days. So when we hired our warehouse associate and manager, he gave us a very good inventory forecast strategy for us to procure sufficient only enough goods,
instead of like stocking 400,000 or 500,000 and you’re gonna
run into cashflow problems if you’re not able to sell out all your products.
Yeah, absolutely. Okay. Evan, if you continue with that,
how you actually managed in keeping the right balance of products?
Because obviously you don’t want to run dry either. Sorry, what?
Run dry on inventory, right? I mean, that’s probably one of the worst things
that can happen. You have this campaign and it rocks, you sell.
So right now, for us, we use a hybrid system. Most people call dropshipping as
like, you don’t have any stocks, but yeah, if you’re running
volume, you need to have some stocks for sure. So what we do actually we do a
hybrid system where we actually — so let’s say, day one we sell 100 piece. So
instead of buying just 100 pieces will probably buy 200 pieces. So that you
can last for the second day as well. So I mean, on day two, let’s say we sell 150.
We still have a surplus of say 50. So we can decide from a day-to-day basis on
each product, how much more we want to order. So we never run dry
but we never overstock as well.

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