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Dropshipping - a tool for testing demand

The direct-to-consumer market will continue to grow steadily over the next 5 years. This means that dropshipping will continue to be popular as a simple and affordable online business model. Retailers and distributors use dropshipping to expand their assortment and test demand by buying small trial batches of goods.

Demand testing helps a business make informed decisions about cash flow, resource allocation, and marketing costs.

By constantly experimenting and observing the actions of competitors and correctly identifying trends, a whole group of products can be identified for which there is already or is predicted to be an increased demand. It is necessary to take into account seasonality and prepare for sales of seasonal goods at least one month in advance.
Retailers usually forecast demand based on experience, sales history, trend preferences and seasonality. This approach allows for efficient supply chains. After testing demand, the retailer makes a final decision on whether to buy in bulk or whether to continue with dropshipping.

In dropshipping, it is possible to sell by adapting to the "situation" in the market, or to create demand by promoting and advertising the product, the demand for which needs to be generated. In other words, sometimes creative solutions become value-added products.

TON OP doo ltd offers high-quality, powerful tools for effective demand planning which help manufacturers, retailers and distributors calculate the economic viability of a deal and plan revenues.
Data collection
The minimum amount of data needed for effective demand planning is information on transactions and sales over the last 3 years. This gives an indication of which products are seasonal and which are ad hoc and occasional. Using Tonop tools, it is easy to import sales history from spreadsheets, databases, ERP or accounting systems.

Demand planning
Demand planning analyses the data received and decides which supplier to buy from and in what quantities. With the services of TON OP doo ltd, you can continually analyse demand and sales results.

Supply planning
At this stage, a work plan with suppliers is developed, supply logistics are planned, budgets are calculated, and revenues are projected. Based on this data, a final decision is made as to whether to proceed and key performance indicators are taken into account.

When testing demand, don't forget to calculate product margins. With an income of less than 30% cooperation will not be profitable.

Direct delivery orders
Study the demand for certain goods by analysing the number of queries on search engines. Then start looking for suppliers from whom you can buy high quality goods. It is important to the dropshipper that the goods supplied on behalf of your shop and brand are of high quality, have certificates and warranties. Your customer needs to become your loyal customer, and to do this, they need to receive not only high quality goods, but also quality service. With direct-delivery orders, suppliers have to be ready for more orders and shipment quantities.

TON OP doo ltd tools
If you choose demand generation tactics that do not react to customer behaviour but guide it, you can use the right marketing campaigns, promotions and special offers to motivate customers to buy. Demand planning is then easier, you can act instantly and effectively. TON OP doo ltd's tools simplify testing processes by enabling you to accurately prioritise the tasks to be performed.

Demand testing markedly improves the accuracy of business planning allowing retailers to effectively manage their product offerings, inventory levels and logistics decisions, significantly increasing profits.
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