Multiple Streams of Income.
![Avatar for Davinchysax](https://cdn.rcimg.net/Davinchysax/avatar-2a3212857887fed00f2e20035c1175b7.jpg?width=150)
According to Google Trends Data, the number of searches for drop shipping has increased over time. People now purchase online everything, including apparel and technology. The days of going to the store and purchasing what you need are long gone. The popularity of e-commerce is steadily growing with each passing year. According to the online statistics portal Statista, global retail e-commerce sales were $2.3 trillion in 2017 and are projected to surpass $4.88 trillion in 2022.
What is Dropshipping?
Dropshipping is a business concept where the vendor neither processes the orders nor maintains any goods inventory. To have the order sent directly to the consumer, it contacts the manufacturer, a wholesaler, or a store and transmits the customer orders as well as the shipping information. As an example, there is a vendor that sells shoes online (SL). A buyer also places a shoe order (BY). To offer the order information and delivery address to the store or manufacturer when SL puts an order, BY collects the order information (MF). The item is then sent to Via by MF.
How does SL generate revenue?
You see, when someone puts a purchase, SL maintains the commission and pays MF the true cost of the shoes while emphasizing shoes on its website and raising the price. Some well-known brands, like Zappos and Amazon, have entered the dropshipping market. Thus, the business model becomes much more well-known. Furthermore, dropshipping is expected to transform the e-commerce sector and may perhaps represent its future.
If you want to learn more about dropshipping, you may read the Oberlo booklet that answers that question. Here are a few factors that support the validity of dropshipping.
Scalability
One of the largest dropshipping internet merchants today is Aliexpress. You see, that includes more than 8 million goods from 10,000 vendors. With the help of this business model, a significant degree of scalability is made feasible. Only the marketing and customer service aspects of the retail need to be prioritized. As a result, they are not required to consider overhead costs or the rapidly declining warehouse rents.
Shipping & Packaging
Although it seems sophisticated, operating an online store is a challenging task. It's frantic dealing with orders, packing, and shipping. Although it is possible to outsource services, doing so requires a large investment. However, dropshipping eliminates the requirement for handling packing and delivery. You only forward orders received for your shop to wholesalers or manufacturers.
Lowering the cost of the catalog and the photography
Let's face it, many consumers who purchase online browse product photos or catalogs. If you're operating a traditional e-Commerce firm, you must hire photographers to take high-quality product photographs. However, dropshipping also addresses that issue. If you use a platform like Oberlo, you may add product photos from websites like AliExpress to your shop. That will save you a ton of time in addition to lowering your costs.
Procuring Products
Dropshipping is a well-known e-commerce business strategy for this main reason. It's difficult to launch an e-commerce company from scratch. All the products you plan to sell must be bought and in large quantities. You must maintain an inventory to retain them, which requires significant outlays of money. However, dropshipping presents a whole unique set of circumstances.
You may have a storefront in addition to a platform like Shopify. It is easy to import products from suppliers into Shopify, store them, and send them directly to consumers. Additionally, you may contact your manufacturer or store via AliExpress. Dropshipping is superior to a traditional e-Commerce company strategy.
Order Processing
Most e-commerce business owners do not anticipate having to spend their time picking, packaging, and shipping items. Yes, they may hire a small e-commerce fulfillment company or Amazon FBA to handle their order fulfillment. However, the dropshipping approach allows for hands-free fulfillment since the manufacturer or wholesaler handles all aspects of shipping and packaging.
In conclusion, there is no question that e-commerce is evolving. In the next years, it will undoubtedly continue to improve significantly, and dropshipping will play a significant role in that. Various sectors have now been claimed by traditional e-commerce companies, and certain nations are wildly prosperous. But other businesses failed. We cannot ignore the fact that starting an e-commerce company has certain risks. When we discuss the function of dropshipping, a significant quantity of dangers and obstacles are greatly reduced. It may be a fantastic way to jumpstart those new firms and businesses.
![Avatar for Davinchysax](https://cdn.rcimg.net/Davinchysax/avatar-2a3212857887fed00f2e20035c1175b7.jpg?width=150)