Some say that the era of regular e-shops is coming to an end. Why? Well, because dropshipping has taken a massive lead in the race called e-commerce. It continues to leap forward and grow at an impressive rate. Maybe it is because there is no hassle of dealing with inventory and such, or maybe it is because most people prefer this business model. But one thing is certain – it would be difficult to imagine the future of e-commerce as one without dropshipping.
The Popularity Over Time
Looking at things from a historic perspective, regular e-shops have had an earlier start than dropshipping, but looking at how things are turning out, the trend shows that more and more entrepreneurs are abandoning the more traditional approach to sell and are looking to convert into dropshipping.
Any business is looking to grow over time, and those who are never satisfied usually tend to dominate the market. Dropshipping allows to build a massive empire of profit from scratch and the money you make depends on when you are willing to stop scaling. For instance, if you are running an e-store, there will be expenses for inventory. Meanwhile, dropshipping grows with the help of marketing and customer service. A lot of problems that would occur in another scenario simply do not exist with dropshipping.
Photos and Cataloguing
Imagine that you are running a store on the internet and that there are a lot of different products that you want to sell. It means that there will be a lot of work involved in taking pictures and organising everything. Dropshipping, on the other hand, takes care of these matters because you are operating as a middleman and all the information, including pictures, comes from the seller.
A new business will always be in short supply of hands. Hiring someone to take care of packing, shipping, picking the products, etc. will be an additional expense and one that is inevitable. Doing something like that yourself would take a lot of time. And while it might be possible with few orders a day, there will come a time when it will be physically impossible. Again, dropshipping eliminates the order fulfilment issues because it will be the manufacturer who has to prepare the product for shipping.
Being the one who takes care of production is all well and good, but realistically, how many entrepreneurs can boast of being able to do that. In most cases, they have to order items from a manufacturer, in bulks. Depending on where you live, this can become a massive headache with all the export-import customs and other problems that might occur.
And then you have dropshipping, with apps like Oberlo and platforms like Shopify which make everything easier. Even if you have to be the one to change prices or keep track of orders, everything is manageable from the dashboard.
If you are ambitious about growing on the e-commerce front, it is expected to deal with hundreds of thousands of items every day. And when you have to think about how much money is wasted on the personnel working at a warehouse, how much it costs to rent a place, and how to deal with the inventory that does not sell, it adds up to quite a hefty sum of money. Starting out already costs a fortune for some. After all, every penny saved is a penny earned.
Low Initial Costs
One of the biggest advantages of dropshipping and why people pick this path of their e-commerce career is a low investment. The only thing you really need is a website with a decent hosting provider. Then it comes down to how good you are with marketing. Even if you are lacking the money to promote your site, there are plenty of ways to do that without paying. This would include social media, Reddit, Quora, niche-related forums, and so on.
So to make a conclusion, it should be more clear why dropshipping can be considered one of the cornerstones of e-commerce. In fact, it should be considered to be the carry these days. Finally, there is always room for those who would like to give a try and start making money as well. Learn more about the benefits and disadvantages of dropshipping from the source – Oberlo.com themselves. Those who have spent time learning and persevering despite failure are the ones who made their dreams a reality.