Today e-commerce business is booming on the internet. According to Forbes report, the e-commerce industry surpasses a $370 billion end of 2017.
Moreover, 23% gain from dropshipping businesses.
This reach attracts new entrepreneurs including startups.
This is the reason dropshipping become one of the best business models in 2018 in the e-commerce marketing field.
There are a lot more reason entrepreneur attracts towards e-commerce. It is easy to start, less investment and having a low business risk.
Google Trends reveals that in the last couple of year, the Search Interest indicates in dropshipping has risen 89% and with it the ascent of dropshipping organizations that incorporate any semblance of Doba and Dropship Direct.
Also dropshipping apps, for example, Orbelo that enable you to additionally streamline the dropshipping procedure, or Printful, which lets you dropship one of a kind self-designed products. It is no big surprise you need to get in on the dropshipping activity.
Numerous huge names in e-commerce business began with dropshipping, for example, Amazon and Zappos. Today, billion-dollar dropshipping online retailer Wayfair and the million-dollar Blinds.com are top contextual analyses for the individuals who require inspiration.
The following are six reasons why the dropshipping business model is speaking to the two startups and prepared business visionaries. These issues have been pestering issues in the conventional internet business, which can be illuminated instantly with the dropshipping business model.
All e-commerce stores deliver their products directly from wholesalers, which are located in different countries. For this, they require items to be ordered in mass, which is then delivered to the nearby warehouse preceding being promoted and sold. The entire process requires a ton of time, money and resources. It often includes the involvement of exorbitant intermediaries, for example, banks, payload shipments, and export-import agents.
However, the dropshipping business model gives freedom to retailers to sell products without worrying about the bulk order of products. With a turn-key e-commerce storefront like Shopify and a dropshipping application like Oberle, the whole process is streamlined considerably. The retailer can choose to contact the wholesalers by e-mail to tell them that their products are currently being carried at the store. The rest of the process, for example, bringing in item photographs, changing prices and order following, can be easily done from the dashboard.
An e-commerce store need large storage space for products, especially when it having a broad range of products. storing 10 to 100 products may be imaginable, but storing 1,000 to 1,000,000 products cost extra, which isn't inside a startup's budget. The dropshipping business model having no such issue of storing products, as the products remain with the supplier or wholesale until the product does not order.
E-commerce business person doesn't want to spend their time in product packing. That's why they outsource order to different courier services for the delivery of the product which added an extra charge to the business. But in the dropshipping business model, there is no issue of outsourcing of delivery of products. The whole process from packing products to delivering the products lies in the hand of merchants.
Product Catalog and Photography
An e-commerce store owner needs to take professional-quality photos of products, for this they required high definition camera, a light box, lighting, which need more cost. This problem is solved with a dropshipping management application, as the "item bringing in" feature takes into consideration moment photograph import.
There are many dropshipping online retailers, which carries more than eight million products from 10,000 suppliers. Yes, eight million! Such massive versatility is made possible by this business model.
Since the retailer just needs to concentrate on the marketing and customer service sides, they don't need to stress over the skyrocketing warehouse rental and other overhead expenses.
Error Free Practice with Right Tool
While there are a lot of pros to dropshipping, a fast Google hunt will create a few cons also. No doubt, there are a few risks associated with dropshipping, however have no dread, as every potential problem has a basic arrangement! The most widely recognized "drop transport troubles" are issues with inventory, provider mistakes, concealed charges, and overwhelming competition. Inventory issues and provider mistakes can be come down to poor communication between organizations.
Luckily, there are a lot of answers for automate communication. By embracing XML, EDI, or CSV your acquisition documents and inventory updates can be traded naturally and electronically. This wipes out the requirement for the manual production of procurement requests or following data and empowers inventory updates to be sent progressively to decrease the possibility of delay purchases.
By using put stock in providers and having top to bottom conversations with them, you can have a grip of how the request cycle will be dealt with and who will pay what. Likewise, by looking into your providers and picking valid ones, you can get rid of the trick organizations that would likely charge you concealed expenses. As specified before, it is anything but difficult to begin with drop shipping. Therefore, there are many organizations to rival. To separate your business and transcend your competitors you will need to consider having extraordinary client benefit, some one of a kind products, and an incredible site.
The dropshipping Business model provides little new companies with limited resources the chance to confidently compete with medium and large-sized online retailers, subsequently making the e-commerce world an equal play area for all. This being stated, expect to see more e-commerce stores embracing this model in the future.