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Did you know that online sales were projected to reach more than $370 billion USD in 2017 alone? With the eCommerce space rapidly expanding due to the advent of smartphone technology and social media, it is no wonder that online businesses are becoming commonplace. Drop shipping specifically has become a go-to for online businesses to sell a variety of products. The ease of use and general promptness of manufacturing have specifically made drop shipping phone accessories a promising avenue.
If you are thinking of becoming your very own drop shipping eCommerce merchant business for phone accessories, it is essential to conduct thorough market research. Understanding the drop shipping phone accessory industry can help with stocking, inventory, and promoting accessories that are currently trending or in demand. Once you are familiar with the process of drop shipping and all it entails, launch your eCommerce store in any market you prefer.
What is the Drop Shipping Industry?
In 2017, more than 23% of all online sales completed were done via a drop shipping site or solution. The total sales of drop shipping items online in 2017 totaled more than a whopping $80 billion. While the industry may seem old school or outdated to those who prefer using mobile apps and solutions such as Amazon’s FBA, it is extremely profitable for those looking to enter the right markets.
Drop shipping allows you the opportunity to promote and sell products without stocking or shipping the inventory yourself. With a drop shipping solution, simply promote your inventory and allow the drop shipping company to do the rest.
Drop Shipping Phone Accessories
Let’s be real, the general public is more or less addicted to their cellphones. And with 96% of Americans owning some type of cellphone, it makes sense. Phone accessories are a large part of owning a phone, especially with high-end smartphones. Phone cases, screen protectors, and grips are some of the most popular types of products sold for phones. Protection is valued highly with this type of electronic which is why sourcing the best product for your business is important. It should be stylish, sturdy, and most importantly fit!
Not all ancillary products for cellphones are made with safety and functionality in mind. Phone accessories have become a way for individuals to express themselves. Whether that be with a vibrant phone case or high-tech headphones, accessories can easily become a statement.
Some of the most popular phone accessories include:
- Phone grips
- Screen protectors
- Car holder mounts
- Phone cases
Another big push in the phone accessories space currently is a focus on photography. Platforms such as Instagram have increased the interest in photosharing. Now, products have emerged that alter the function of the phone’s camera. Accessories can enhance the camera lens or even wirelessly print out copies of pictures taken with the phone. The opportunity exists here to aid in the public’s desire for capturing moments in time.
Why is Drop Shipping Considered High Risk by Banks?
Unfortunately, while drop shipping business models are attractive due to their ease of use, they are often considered high risk. Banks and financial institutions are wary of drop shipping businesses as they can be unreliable or result in more chargebacks than standard industries. When you are thinking of launching a drop shipping business of your own, it is important to consider the industry and find ways to reduce your risk in it.
Conduct research on drop shipping companies that offer phone accessories to review and compare your current competition. Learn more about your competition by researching social media and other blogs where they are mentioned. Spend time learning more about the followers of your top competitors online. The more familiar you are with the phone accessory drop shipping industry, the more likely you are to build a drop shipping website that succeeds.
Benefits of Online Credit Card Processing
Running a drop shipping business requires the ability to accept and process a variety of payments. Whether your customer prefers to pay via credit card or an online payment gateway, ensuring they can do so is imperative to remain in business. Without the ability to successfully process credit cards, your drop shipping phone accessory business is not likely to survive. The following are benefits of securing payment processing for your drop shipping business:
- Expand Your Online Reach: The more payment options you provide to your customers, the easier it is to attract new prospective shoppers.
- Gain Trust: New companies or brands must gain the trust of their potential customers. When you offer more options for payment to newcomers, it is much easier to gain the trust of unsure shoppers.
- Revenue: In order to maximize the amount of revenue your business generates, you need to accept a wide range of payment methods. With a high risk payment processor, gain peace of mind knowing that all transactions will be completed without issue.
Why You Need a High Risk Merchant Account
Once you have made the decision to accept credit cards for your phone accessory drop shipping site, you must find the appropriate service provider to acquire a merchant account. A high risk credit card processor is optimal as it ensures that your business will be able to abide by all of the guidelines without fear of being shut down.
Unfortunately, using a standard payment processor for your drop shipping phone accessory business can result in disaster. Standard payment processors may not consider your business high risk until you begin generating revenue. However, this means that your payment processor account may be frozen, flagged, or terminated without warning at any time. Applying with high risk payment processors is highly recommended to steer clear from potential issues that may arise.
Current processors that do not work with high risk industries such as drop shipping for phone accessories and other ever-changing markets include:
While these payment processors are massive and popular, it is advisable to stick with a high risk processor when operating a drop shipping business. You may already have a payment processing account with a popular merchant services company. However, it is essential to remember that your account may be flagged or put at risk at any time if your business model is deemed high risk.