When it comes to starting your shopify dropshipping company, the first step is to decide if your products will be available to potential customers.
You have many sales options, but most likely you will be able to choose one or more sales from your online store on Amazon or eBay.
Dropshipping at Amazon
Amazon sells many goods and stores them online. However, not all listed products can be distributed through Amazon’s website to third-party merchants. Amazon, like eBay, is committed to promoting the sale and resolving any issues that may arise.
Pros
Amazon has many advantages over eBay. You can get started quickly, have instant exposure to large audiences and don’t need to worry about SEO or ads.
Fulfillment by Amazon is Amazon’s own fulfillment warehouse. This allows you to add your goods to drop shipped orders and not have to worry about packaging, shipping, or warehousing.
Cons
Listing fees: You pay a relatively low transaction fee for accessing this vast network of buyers. Amazon commission rates vary depending on the product, but they are generally between 10 and 15%. Dropshipping margins are very low, so a lot of your earnings will be taken.
Data on sales exposure: Amazon’s platform doesn’t allow you to see all your sales results. This includes the best-selling products and overall sales. Amazon is accused of using the data to promote itself in the sector and find major sales opportunities, driving out other retailers who sell into its platform.
No long-term consumer liaison. It is unlikely that you will be able establish long-term relationships with your clients. Amazon is a business that wants to survive, so focusing on the products and not the vendors is best for them. You must be careful about how you brand your company, display your products, and interact with customers.
No tailoring. You’ll have no flexibility. Amazon will have complete control over everything you do, including branding, UI and marketing.
Dropshipping at eBay
eBay is the largest online auction site for physical goods in the world and is well-known to all. Here are some reasons to consider eBay.
Pros
It’s easy to get started. Get involved and you can start selling wholesale products with eBay right away. You can create an account and add a list to get started.
The public is invited. When you list on eBay, you’ll be able to reach the millions of online shoppers who frequent the auction giant. Your ads will be seen by millions of people, and there will be a healthy and competitive marketplace to help you get your goods a fair price.
Low publicity. You don’t need to worry about traffic payments, SEOs, or ads. This is a great advantage, since marketing is the most difficult aspect of the Aliexpress dropshipping company.
Cons
Listing fees. This is the biggest problem with eBay. The performance rate is the most significant. It can exceed 10% of products’ selling prices. Dropshipping is a low-margin industry where it can eat into your earnings.
Continuous monitoring. The eBay marketplace is in auction form. You will need to keep track of your items and re-list them as needed. Although many tools simplify the process, listing a static product on your own ecommerce site is not always easy.
Your distribution platform cannot be customized to meet your needs. It is important that your product listings follow eBay guidelines. This will make it easier for you to create a friendly and value-added page.
No long- consumer liaison. While you may have some loyal eBay customers, most of them will not buy from you again. You may lose any goodwill you have built up through excellent service.
The marketplace’s structure is designed to serve itself. EBay does not want to focus on you vendors. They just want to focus on the products. Your options for how you interact with customers, market yourself, and how you build your business will be severely limited.
No asset building. When you have a shop that is popular and attracts repeat customers, you’re creating an actual company of interest. When you sell on eBay, you are not creating any permanent brand or web properties of real value that can later be sold.
Creating your own online shop
An online store is a great way to sell products. This is the best way to attract dropshippers and build a profitable business.
Pros
More flexibility. Your online store can provide a unique shopping experience that promotes the sale of your products and adds value for your customers. To inform your customers best, you can personalize the website’s look and feel.
Simple architecture. It is easy to set up your own eCommerce store with platforms such as Shopify. You can choose from hundreds of templates, customize it, add your products, and hook up a payment gateway. Depending on the type of online store that you are trying to create, it is possible to get up and running in a matter of hours
Set for mobile. Selling on Amazon and eBay over mobile can be difficult. Your site will be safe and secure if you use an ecommerce platform that is trusted. It will also look great on your iPad or smartphone. As almost 30% of all online transactions are done via mobile devices, this is becoming more important. Shopify and other online stores allow you to manage your entire business from your smartphone. Dropshipping business owners that want to manage their business from anywhere, including on the go or at the beach, will find this particularly attractive.
No third-party payments. You won’t have to pay 10% to 15% on any sale to Amazon or eBay, which will dramatically increase your profit margins. You’ll make more money by setting up your dropshipping business with an online store.
Making a big deal. Your company will have a unique look, know-how, and repeat customers. You will be creating an equity company. It is easier to sell a company that is built around a website.
Cons
Get less traffic from your store. Your site will be responsible for driving traffic through SEO, marketing and paid ads. You will need to be able and willing to spend money on long-term marketing campaigns for your new store.
