An ecommerce store that does dropshipping looks identical to a conventional ecommerce store. Customers mostly care about the quality of the product, the price of it and the store’s reputation and don’t care much about how the products were sourced and who does the shipping for them. Dropshipping is the way forward for a majority of online commerce stores.
To put it simply, “dropshipping” is a business model in which the retailer doesn’t have to keep an inventory of their own and not have to process the orders themselves. All the orders are fulfilled and then shipped directly from a wholesaler. The retailer focuses mainly on the marketing and branding of the business alone, not worrying about the actual logistics of it.
Dropshipping is nothing new. Huge names in the e-commerce sector like Amazon and Zappos started out with drop shipping only. As of now, there are billion-dollar dropshipping online retailers in the market. This includes Wayfair and Blinds.com. These are good case studies for anyone who needs inspiration to start.
Let’s see four reasons why dropshipping is a good business model and is appealing for both startups and experience entrepreneurs alike. The issues that have been a regular problem in traditional e-commerce can be solved with the help of the dropshipping model.
#1 Sourcing of Products
Traditional e-commerce shops source their products directly from the wholesale suppliers, located across the globe in different countries. They order the required items in bulk to reduce costs, and then they are delivered to a physical warehouse before they can be promoted and sold. The whole process needs a lot of time, effort, money and then resources. It needs a lot of costly intermediaries, such as the help of banks, cargo shipment providers and then expensive export-import agents.
However, with a dropshipping model, retailers are able to sell products without worrying about product sourcing at all. With the help of a turn-key online storefront like Shopify and a dropshipping app like Oberlo, the whole process is simplified. The interested retailers can now contact wholesalers just by email and then notify them that their products are being sold at the store. The remainder of the process, which includes importing product photos, changing prices and order tracking, is easily tracked from the dashboard.
#2 Storage Requirements
For a traditional e-commerce store large storage spaces are a compulsory requirement, especially when you are selling numerous items. If you are planning to store a small inventory of 10 to 100 items, then it’s feasible. More than that would cost a lot of money, which is not a possibility for many retailers. Dropshipping solves this warehouse issue, as products are kept either in the manufacturer or wholesale supplier’s warehouse, til it’s purchased.
#3 Order fulfillment
Many e-commerce founders, when they are starting out, don’t expect to spend a good chunk of their time on picking, packing and shipping orders. That’s the reality thought. However, with a dropshipping model in place, it allows for a hands-free fulfillment of the whole process. The packing and shipping is dealt by the wholesaler and the manufacturer.
Scalability isn’t an issue when it comes to dropshipping. The retailer will have to focus only on the marketing and customer service component of their business. They don’t have to worry about the increasing warehouse costs and other logistics costs. You can scale without having to worry about all the other costs associated with it.
To put it simply, the drop shipping model provides small startups with little resources, an important opportunity to compete effectively with medium and large-sized online ecommerce shops, thus making the world of e-commerce an equal playground for all players. With that being said, you can see more and more e-commerce stores adopting the dropshipping model in the future.
I hope this article was useful for you to learn about the advantages of using a dropshipping model to run an online shop. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
Louisiana And Oklahoma Introduce Digital Identification To Prevent Fake ID Use
Digital ID in Louisiana Utilizing digital IDs has been a commonly broached topic for a while now. Although most states are only either deliberating their helpfulness or in the utmost initial stages, Louisiana has moved forward. The primary introduction of this technology was done back…
ScanGuard Review – Here is What You Should Know
Doesn’t it sound good and satisfying to have a goop-performing antivirus that is reliable enough? Yes, it is. For that reason, you need to be extra careful when you are in search of a good antivirus. Put all the necessary factors into consideration so that…
The Emerging Need for Social Media Security
By the time you’ve finished reading this sentence, nearly 700 passwords have been stolen from social media accounts across the world. Social media security breaches have the potential to cause up to $6 trillion in cybercrime damages by 2021, up from $3 billion in costs…
Which New Lorex Security Camera Is Right for Your Home?
Keeping your family and your possessions safe requires a proactive approach, and one way to protect what you care about is with a security camera system. Lorex Technology is well known for their security camera solutions, and their two newest products will change the way…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
How to Hack Someone’s Snapchat with SpyMyFone
Snapchat is a fun way to take, edit and share photos online with friends. Popular for its numerous filters and disappearing messages, photos, and videos, Snapchat has become a global phenomenon. So then why Spy on Snapchat? Well, what was once a fun photo sharing…
Top 5 Logistics Trends In Supply Chain Management
We live in a fast-developing world, and if big companies want more profit, they have to adjust to the newest trends. You may think that the economy is in a state of crisis; however, it is just a transition to technology-based management. Trends are developing…
How to Immediately Improve Your Online Security
While the internet might seem paradisiacal, danger lurks in the obscurity of it. Apart from outsourcing your IT needs to specialists like IT support companies in London, there are immediate measures you can take to ensure your online world is as secure as the home…
Everything You Need To Know About Cybersecurity In 2019
With long workdays and jam-packed weekends, it’s a godsend that we can do most of our shopping, social interaction, and many other day-to-day tasks from the convenience of our computers and mobile devices. The internet has been making our lives so much easier for the…
4 Reasons Why You Should Upgrade Your Cybersecurity Right Now
Decades have passed since the phenomenon called the internet, cybersecurity is still very much a threat to businesses and individual users alike. Considering how much money cybersecurity companies invest to bolster their solutions, you would think that cybersecurity threats would be a thing of the…
Why Small Businesses Need A Web Application Firewall
Today, cyber security is one of the primary concerns of small businesses and large tech companies alike. The threat landscape is ever-evolving, with increasingly sophisticated hackers racing to thwart cyber security experts as they build stronger lines of defense. On top of that, the numbers…