Dropshipping is not an option for a long-term career. Dropshipping can be a great way to make money online, research the market and earn some extra income. However, it is recommended that you transition to an ecommerce brand once your dropshipping business starts to gain consistent traffic.
Dropshipping is a viable career, and is it worth the risk?
Dropshipping is a great way to make money online, even in 2021! Dropshipping can still be a great way to make online money. You don’t have to spend a lot of money to start your dropshipping business.
Dropshippers start with less than $1000! Dropshippers don’t require an office, warehouse, or permanent employees. A degree is not necessary! I’ve seen teens start and grow successful Dropshipping stores!
Dropshipping is a great business idea because of the low cost of dropshipping and the potential to make money online.
Dropshipping is an ecommerce fulfillment model where a dropshipper digitally market a product. He does not own or have inventory. The orders placed on the dropshipper’s website are fulfilled by third-party suppliers. Check out our dropshipping course.
Dropshipping is still a profitable career in 2021. No! It’s not sustainable long-term.
I will discuss below why dropshipping is a bad business model and not sustainable long-term.
Why dropshipping is bad
Dropshipping is a bad career choice and should not be considered.
There is little control over shipping times. Most dropshippers source their products from China and dropship to North America. Although shipping times can be slow, there are ways to speed up shipping times. Dropshippers can speed up shipping times if the products are sourced locally. Check out our verified listing of US, UK, and European suppliers. Dropshipping traditional AliExpress lines takes 20-30 days for delivery to North America. This is simply not possible!
Very little control over product quality. Dropshippers don’t make the products or have the inventory. They also can’t control the quality of dropshipped products. Before shipping it to customers, the dropshipper either doesn’t inspect the product himself or his agent. The dropshipper must rely on the supplier to ensure the quality of the product. Dropshippers can reduce the risk of receiving a poor quality product by using a trusted supplier. They also have to inspect the product themselves, ordering samples to verify the quality.
The lack of intellectual rights in the product makes it easier for competitors to take over a dropshipping company by selling what the dropshipping shop is selling. Dropshippers don’t usually have any rights to the product, such as trademark rights or design rights. Dropshipping the same product is possible for anyone! This creates a lot of competition! However, a competitor could easily spy on a dropshipping site and copy and paste its winning products list. He could then source the exact same products for his store. This could make it more competitive than the original dropshipping shop which did all of the testing and finding the winning products.
Very little control over branding. Traditional dropshipping does not allow for product branding or repackaging. Dropshippers negotiate with suppliers to fulfill orders. Many suppliers won’t offer branding or repackaging services, especially if the order isn’t large. Dropshippers are unable to brand products or offer them in customized packages. This makes it difficult to increase brand recognition, recognition, and recollection. E-commerce requires branding to ensure loyal customers and return business. Dropshipping is not a viable career without branding. No!
Do you want to be a Droshipper or an ecommerce brand?
Dropshipping, as we have discussed, is not a viable career but it is a great way to make money online.
Dropshipping is not sustainable as a long-term business model because you have little control over the customer experience, branding, and product differentiation.
An e-commerce company gives you the ability to control your product differentiation, product quality, branding, shipping times, and ultimately customer experience. This makes ecommerce brands scalable over time!
This makes it hard for your competitors to surpass you. Dropshipping is the most common way that e-commerce entrepreneurs begin and then transition to e-commerce.
Dropshipping is an excellent starting point due to its low capital investment and marketing research benefits. However, it’s recommended to scale quickly to an online brand once dropshipping stores start gaining traction.
How do you transition from dropshipping into an e-commerce business
These business models can help you transform a dropshipping shop into an e-commerce store:
Dropshipping is an ecommerce business that sells products under your brand name. Sometimes, it is called private label dropshipping. Dropshippers brand the products, but don’t have inventory. They fulfill orders through their supplier or agent.
Dropshippers can easily switch to a private label with the help of;
Use a private dropshipping agency. This is a great way for you to scale your dropshipping business. Private agents offer repackaging and can source products for you. They also repackage the product in your brand before shipping. Private Chinese agents are often able to source products at an affordable price. They can also verify product quality. Most private Chinese agents can ship your products quicker using shipping lines such as 4px or CNE.
Printify is a website that offers print on demand services. Printify is a website that allows you to dropship T-shirts or caps with your logo or graphics. Printify allows you to source products from suppliers that can print your logo/logo before shipping them out to your customers.
Inventory/sales using 3PLs
Third party logistics, or 3PLs, is a more sophisticated way to transform your dropshipping business into an e-commerce company.
A 3PL company is basically one that has a warehouse and offers order fulfillment.
Dropshippers can purchase products in bulk from their Chinese supplier to be shipped to the US 3PL. This means that the products are available in the US warehouse, and the 3PL could ship the products within 1-3 days. I recommend Shipbob3PL.
Many 3PLs offer repackaging service, which allows dropshipping to easily become a business with fast delivery.
A 3PL allows the droshipper to order bulk products from his supplier. Dropshippers will often get bulk products at a discount. Shipping in bulk also reduces logistics costs and increases profit margins.
Another benefit is product differentiation! Dropshippers can negotiate product differentiation services by buying products in bulk from suppliers.
He could, for example, negotiate with the supplier to produce a product with better features for his store. The dropshipper could go further and register the new design and obtain exclusive legal rights, making it more difficult for dropshippers to compete with him.
Use a local supplier for dropshipping
This is the best way to scale your dropshipping business. You should choose a supplier that is located in your target country. Dropshipping to the USA is an example of this. It would be possible to ship quickly to the USA and negotiate with the supplier to provide private labelling services.
Dropshipping is not a sustainable career, but it can be a great way to make some extra money online. It’s also a great way to start an ecommerce company with a small budget and research the market to build a brand.
Drop Shipping is often just the way, but an ecommerce brand can be the end!
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