A digital marketer’s dropshipping success – Why is Starting an eCommerce Dropshipping Store Always a Better Option?
Dropshipping is a good alternative for eCommerce sellers who do not have a warehouse or a physical store to keep their products. It is less hassle if you are still starting your eCommerce business.
More people are adapting this supply chain management because it is convenient and cost-saving. In 2018, the dropshipping market size worldwide was posted at 102.2 billion USD.
According to Grand View Research, dropshipping’s compound annual growth rate (CAGR) from 2019 to 2025 may hit 28.8 percent. The market for dropshipping keeps growing as shoppers prefers to buy online than going to the malls.
It is time to learn why an eCommerce dropshipping store is always a better option.
What Is Dropshipping?
Dropshipping is a convenient retail fulfillment method offered by manufacturers and wholesalers to retailers to sell goods without a warehouse to store them.
The retailer contacts the wholesaler after receiving an order from a customer. The wholesaler transports the item directly to the customer.
Retailers can sell a wide range of products without the need to stock the inventory, making it more appealing for startups, home-based, and new online sellers.
According to eCommerce platforms, 27 percent of online sellers find the dropshipping method is convenient to tread as a merchant.
Reasons why is starting an eCommerce dropshipping store always a better option
Convenience, cost-effectiveness, and efficiency have prodded wholesale buyers and retailers to find manufacturers to do business.
Dropshipping provides one-stop solutions to online merchants who do not have enough space for storage and lack the machinery to produce the products to sell. It is vital to know the reasons why starting an eCommerce dropshipping store is an advantageous option. Here are the top reasons:
Time, Energy & Money Saver
Dropshipping saves you a lot of money in maintaining a physical store and warehouse for storing the inventory. If you are a new wholesale merchant or retailer, dropshipping will solve your financial woes in buying the products to sell.
Wholesalers offer you the products that your shoppers would want to buy. After negotiating with a manufacturer, they give you free access to their product images that you can post on your site, blog, or webpage. Once the shopper orders the product, the wholesaler will then deliver it to your customer’s doorstep.
You do not only save money but time as well in the fulfilment process, paperwork, and logistics. Finding customers to buy the items is never a problem when you dropship.
It Increases Customers
Wholesalers and manufacturers can benefit from dropshipping by increasing their customers through their business partners. The wholesale merchants/retailers display their products in their online or physical stores and promote them directly.
Dropshippers have the opportunity to expand their market, increase their customers and revenue without spending money for promotion and maintaining a physical store. The wholesale merchant also increases their customers with their array of products they dropship from wholesalers.
It Increases Wholesale Buyers
Dropshipping has increased the number of wholesale buyers of manufacturers and wholesalers after its introduction in the eCommerce industry.
In 2006, the dropshipping method gained worldwide attention when AliExpress became a favourite eCommerce site in the United States. During this era, people were naïve about dropshipping.
When the Chinese eCommerce stores began their inception in the global market, entrepreneurs grabbed the opportunity by launching their stores to gain revenues.
AliExpress dropshipped the goods to their business partners as more shoppers preferred to buy online. Some of these customers also sell the products they buy from online retailers through social media platforms.
It Leverages Your Business
Both the wholesalers and wholesale buyers can leverage their business through the dropshipping business platform. As a manufacturer, you have more power to triple your time, energy, and dollars. You also have more time to triple your production to meet the demands of your growing clientele.
As a wholesale buyer (retailer), you do business without a store and a warehouse to maintain and have more time to promote the products by posting the product images of your supplier. You build trust with your manufacturer so that your business relationship continues to grow as more customers buy the goods.
It Offers Flexibility
Dropshipping business model is one of the best tools that merchants and wholesalers should adapt. It gives them a flexible schedule, location, and management that other models do not have. Running your business when you travel abroad or vacationing in the countryside is flexible as long as you have a computer and an Internet connection.
Wholesale buyers communicate with wholesalers or manufacturers while having fun. Your schedule is flexible, so you have more time to collaborate with store owners or manufacturers to sell multiple products to end-users. Manufacturers produce more products with the flexibility that they enjoy from dropshipping.
Sellers can Offer Multiple Products to Sell
Dropshipping has opened doors to online retailers and merchants to sell multiple products without capitalisation. They can post as many products as they wish in the online store and sell them to customers. You can choose different product categories of all sizes, hues, shapes, and styles. The supplier will handle the processing after you confirmed the orders.
No-Risk for New Product Testing
The dropshipping model offers no risk to retailers in terms of product testing. Your customer’s mind is unpredictable once the product has reached his doorstep.
It is not your responsibility when there is a shipment error, but do not blame the supplier. You can fix the issue by informing the manufacturer without spending money on it.
You can offer a replacement without requesting the buyer to return the item.
If you are interested now, you can continue reading How to Start a Profitable Dropshipping Business on Amazon in 2022 and start earning as soon as possible!
Can I earn a lot from dropshipping?
Yes, you can earn much with dropshipping business, but it does not happen overnight. It takes more patience, time, and energy to keep the business going. Build your store and find saleable items that you plan to dropship to ensure that you profit from them.
How long will the dropshipped products arrive from China to my customers?
In most cases, shipping the item from China could take two to four weeks to reach its final destination. Tell your customers that the shipping could take some time, and spend time answering their queries about their orders.
Can I offer refunds when a customer returns an item?
Yes, you can offer refunds to shoppers in case the product is defective or shipment error. You can offer them a replacement or new item instead of returning their money and never ask them to return the product to the sender.
Dropshipping is not at all a hundred percent perfect. It is still a better option to start an eCommerce store if you do not have the logistics, money, store, or warehouse. Its disadvantages are minimal compared to the prize you get from getting more customers and increase sales without wasting your dollars, energy, and time.