Many websites and experienced people tell you how to launch a sex toy dropshipping business. And how good is it! Really?
Blue Rabbit is adult sex toys supply chain in China that can offer dropshipping services. Now we tell you 10 truths about sex toy dropshipping according to our rich experience. including 5 benefits and 5 risks.
The Top 5 Benefits of Sex Toy Dropshipping
1, Simplistic Order Fulfillment Process
Sex toys Dropshipping means the retailer forwards the sex toys order to his supplier. and the dropshipper directly ships the order to the consumer. The retailer just focuses on getting their customers from the market. And his supplier will fulfill the order after getting paid. Nowadays online sex stores are the mainstream business and the adult store just trying to get more traffic to their store. the job of the retailer has been much simplified.
2, Stable Profit Margin.
Gross Profit = sell price – supply price.
The selling price can be decided by the retailer, and the supply price is fixed after you Negotiate with the supplier. each Individual sex toy has a fixed profit.
For example The Massage wands vibrator you sell for 29.9 USD on your online store, you can get the item from your dropshipper at 19.9 USD, when your customer paid the retail order, you immediately earn 10 USD for this order, no packing job, no shipping, no duty tax.
What you should be doing is growing your customer base and getting more orders to increase your profit margin.
3, Low Working Conditions Required.
A wholesale business usually requires you to the warehouse, organize, track, label, pick and pack, and ship your stock. However, The dropshipping business model is totally different. Dropshipping lets a third party take care of all of that. As a retailer, your main job is to make sure your supplier gets your customer orders. Everything else will be handled by them.
So you can do it without a warehouse, without a team, without an office, and you can work from home with a laptop. Your daily job is to manage your social media or website, etc
you can imagine you work like this :
4, Wider Range of Sex Toys SKU.
You can get a dropshipping of every sex product from your Dropshipping supplier. Every sex toy manufacturer will develop 3-4 new products every month, In china, there are hundreds of manufacturers, so you can imagine how many sex toy types are in the market. Now you can sell them all without paying a coin.
5, No stock, No cash-flow pressure.
There is no need for a big budget to start, and also no need lot of money to manage it. the drop shipper affords the cost of the stock. and other the middle cost. so, you have low risk when you cannot sell them out.
Compare with wholesale business, it is far lower risk to start and easier to manage.
However, The risks and benefits are balanced. When you enjoy the advantage, what risks you are facing?
The Top 5 Risks of Adult Toys Dropshipping.
6, Customer Information Disclosure
You pay a lot of money for advertising to get customers. When some of them pay for the transaction. You have to send detailed information to your suppliers. If your supplier is a B2B company in China. You are not a competitor. The risk is relatively low. If your supplier is a local distributor or large retailer. The risk is greater when your cooperation is broken. They may broadcast to your customers or share their information with other partner companies.
7, Higher Risks of Transportation.
To maximize profits you would choose some cheaper shipping methods than a courier like DHL, or UPS. If your dropshipper is from China. Usually, like some China Post, the shipping cost is half of the express delivery. The delivery time is more than 10 days, in some cases 15 days. Also, the rate of lost parcels is higher.
But some sex products manufactured in china have local warehouses.
For example, Sex doll is good for dropshipping, they are manufactured in china, and the cost is low. and delivery from the US warehouse. reasonable profit and low risk for delivery.
8, No Priority on Price.
China is home to 80% of adult sex toys, there are many sex toy factories and manufacturers as well as big wholesalers. When you first start a sex toy dropshipping business, you don’t have many orders, a few orders, or a few dozen orders a month. This is much less than other wholesale customers. If the supplier can’t make a reasonable profit from you. Their business service is not very good either. And their service can affect your customer’s experience and end up hurting your business.
9, It Is Hard When The Market is More Competitive.
The sex toys industry has higher profit margins than other products. It supports high-cost business models such as sex toys drop shipping. Every high-margin business attracts players. When there are more and more players. Cost competition is a necessary process. If you cannot reduce your costs, you will not survive in the market.
10, Difficult to Process Issue Orders.
For example, when your customer tells you she got a faulty product or didn’t get any packages. You find your supplier and tell them what the problem is. However, the supplier sends proof of shipping and tells you it’s not their fault. So, how do you determine this case? If the supplier promises to resend the sex toy to your customer, but he has to wait another 10 days. This is a very bad experience.
Whichever way you start your adult business, it will have advantages and disadvantages. You should decide on your own merits. If you’re working as a second career, you could try dropshipping, but don’t expect too much. If you have the budget and want to run a brand of your own for the long term. Wholesale or OEM is a better option. Blue Rabbit is an experienced sex toys supplier in the adult products industry. Feel free to contact us for a better sex toy business.