Online shopping is a part of daily life in modern society. As a shopper, you may have been in these situations: you can find the same product in different stores, or your package is not shipped from the store’s address. If you have had these customer experiences before, you’ve become a part of dropshipping.
Undoubtedly, this is not all about it. Dropshipping business model is now widespread in eCommerce. Many shopkeepers copy the mode of “Dropshipping suppliers + Online Store + Social Media” to run their stores. As long as you have found a dropshipping supplier, you can resell the product from your supplier at a profitable price on your online store. The supplier will fulfill all leftover work after your customer has palced an order.
Want to know more details? Please check the below article. This page will show a further overview of what is dropshipping, how it works, its benefits and limitations, how to start, etc.
This Article Contains:
What Is Dropshipping?
Is Dropshipping Worth It?
How Does Dropshipping Work?
Pros and Cons of Dropshipping
How to Start A Dropshipping Business?
How to Find A Dropshipping Supplier?
7 Best Dropshipping Suppliers
FAQ on Dropshipping Business
Q2: Who are the participants in dropshipping?
Q3: What is the difference between dropshipping and traditional retail business?
What is dropshipping?
To put it simply, dropshipping is an order fulfillment method. It helps online store shopkeepers to sell products without stock with EPROLO super easily.
The word is getting hot. According to Google Trends and search engine results, the popularity of the term has increased remarkably. Although there was a drop caused by COVID-19 at the end of 2019, and have been fluctuations. The search volume of dropshipping was still high and had significant growth in 2022.
It’s not a new thing, however. The drop shipping business model emerged in 2006. And it has been generally known by people due to the developed eCommerce business and improved logistics. The growing number of online store websites raises more attention than ever.
There is no doubt that dropshipping will continue to be a popular business model in 2023 and beyond.
Is Dropshipping Worth It?
Yes, dropshipping is still worth the investment if you want to start an online business easier.
1. Huge Market
As a result of Statista, the estimated value of the market for dropshipping e-commerce was 128.6 billion dollars globally in 2020. Over the six-year period between 2021 and 2026, the value of the market size was forecast to grow to 476.1 billion dollars.
2. Low Investment Cost
Dropshipping involves very low startup as well as operating costs. You do not need pre-purchase any products. You can directly sell online when you get a trending product from the supplier. And pay when you have an order. What’s more, there are no MOQ limits and inventory needed in dropshipping business. So you wouldn’t get in trouble in overstock.
3. Easy Start
When you do dropship business, you only need to decide which dropshipping niches are profitable or you prefer. And then find a reliable dropshipping company. Generally, the dropship company will fulfill with sourcing, packing, and shipping of the products to your customer. So that you can start a business without professional tech or operate knowledge about order fulfillment. In addition, you can pay more attention to marketing and selling.
How Does Dropshipping Work?
Dropshipping contains two parts of work – online store supply and product delivery. The dropship supplier plays a leading role in it. As for online store supply, shopkeepers are the service target. And customers are the object of product delivery.
Starting a dropshipping business has these steps you can follow:
- Set up an online store, upload products you want to sell and find supply chain for the shop.
- The customer orders products in the store and makes payments.
- Shopkeeper sends the order info to the supplier.
- Drop shipper receives orders and packs products.
- Supplier delivers dropshipping products to the customer.
Customer service is crucial for an eCommerce business. During the dropshipping process, packages are delivered directly by the drop shipper. Though it has lower shipping costs, the shopkeeper does not engage in the section of packaging and delivery. So, in the long term, take time to choose a reliable supplier.
In addition, some platforms assist in dropshipping businesses, such as AliExpress, Amazon, eBay, Shopify, and WooCommerce. People can start an eCommerce business with help.
How does dropshipping work on Shopify and WooCommerce?
Shopify and WooCommerce are platforms to create online stores. The two platforms give convenience to building a store website. They make it easy for people to become shopkeepers and sell online.
By installing Shopify dropshipping app or WooCommerce dropshipping plugin, you can get started selling products and fulfilling orders with only one click.
How does dropshipping work on AliExpress, Amazon, and eBay?
As representative eCommerce platforms, Amazon, AliExpress, and eBay have introduced services to support dropshipping business. Being developed for decades, they have numerous businesses comprising manufacturers, wholesalers, distributors, and retailers. Those websites are a sea of sellers and resellers. People can join the platforms and find drop shippers for their shops.
As for Amazon dropshipping, the website teams up with Shopify. A shopkeeper can create an Amazon seller account and connect it with his Shopify store. He can make sales on the two platforms and enjoy FBA (Fulfilled by Amazon) service. Becoming a seller of Amazon, the shopkeeper can stock products in Amazon without paying warehouse costs. And Amazon takes the delivery work. It sends out the products for the shopkeeper.
As for AliExpress dropshipping, the website provides hundreds of millions of products. The shopkeeper can import Ali products by installing the app on Shopify. When there is an order, the suppliers of products will ship the packages to customers.
As for eBay dropshipping, the platform allows drop shipping the product but with some restrictions. In the long term, those limits may strike the initiative of joining the platform.
Pros and Cons of Dropshipping
Benefits of Dropshipping
- Low Barrier to Entry
The eCommerce industry has developed for decades. Domestic or foreign markets provide possible conditions for a dropshipping business. The two most critical factors – creating online stores and finding suppliers – are solved with the help of several platforms.
There is a pretty low barrier to entry, people even can start their dropshipping business at home. A computer and the Internet are all it needs.
- Low Start-up Cost
Dropshipping shopkeepers do not store. It cut down the overhead cost of inventory and warehouse fees. Thus, shopkeepers only pay for the store to platforms. For instance, a Shopify online store charges $29/month. Without a lot of capital needed, so starting a dropshipping business is more competitive than brick and mortar stores.
- Low Cost of Inventory
Inventory management is a headache for all businesses. Unmarketable products could cause business owners to lose a lot of money. However, they don’t have to worry about this. With the order fulfillment method of dropshipping, shopkeepers sell products without holding stock. It is a strength that people can run a store at low risk.
Non-inventory brings time, as well. Suppliers are in charge of packing and arranging delivery. Shopkeepers are out of the process and have more time. People who have major work can take dropshipping business as a sideline.
Disadvantages of dropshipping
- High Competitions
Dropshipping business rockets because of easy entry and low cost. People rush into the market and raise competition. Shopkeepers have to invest more to run the stores; otherwise, they will disappear.
- Long Delivery Time
It could take a month to deliver a dropshipping package. Many factors account for the long shipping time. For instance, the selling product is out of stock; suppliers providing the product are in different locations; a poor shipping option; customs clearance; etc. It is an unfavorable drawback that increases complaints.
- Out of Control on Quality
Shopkeepers do not participate in order fulfillment. The absence leads to a result that shopkeepers don’t control the product quality. They can not check the products before delivery, as well as the package. Since drop shippers deal with the whole order processing, returns and customer service, failure to choose a good one may cause devastating damage to the store.
- Less Distinctive
A supplier can provide the same product to various shopkeepers. A store is less distinctive when customers have alternatives. And it makes the store less competitive and challenging to build up customer loyalty.
How to Start A Dropshipping Business?
Step 1: Choosing a Dropshipping Business Niches
What you sell matters. You should take some time to find the best dropshipping business niches. You can search on Google Trends or other e-commerce platforms like AliExpress, and Amazon to see the hot-selling products.
Step 2: Find a Supplier
Finding a professional supplier can be a vital thing to do. When you find a reliable dropshipping supplier, it can save your time to the utmost extent.
Step 3: Building a Dropshipping Business Store
After you have built your online store, you can connect it with the supplier you found. Create product links and push them to your store
Step 4: Marketing Your Dropshipping Business
The supplier will source and fulfill the order for you. And you just need to market your products to make a profit.
How to Find A Dropshipping Supplier?
It’s vital to find the best dropshipping supplier for your e-commerce business. Though it can be time-consuming. Once you have found a reliable supplier that best supports your needs, you can work hassle-free because the supplier will do all for you ( including sourcing, packing, fulfilling, and shipping).
So do you know how to choose the right dropship supplier? As there are thousands of dropshipping distributors. For this, here is a reference guide you can check below before you work with a supplier:
- Where are they located?
- How about their order fulfillment time, from sale to delivery?
- How about the warehousing and shipping options?
- How do they handle returns or damaged products?
- How about customer service? Can you find customer feedback online? (you can get in touch and test this yourself)
- How about their authenticity? Do they offer fraud protection?
While doing research, do not be afraid to ask. You can check out online dropshipping forums(like Quora, Reddit, etc.), Facebook groups, and the dropshipping supplier’s social media channels. Most people are willing to share their insights and experience about the best dropshipping partners or e-commerce tips.
That is easier said than done, however. Someone may want to directly find the top dropshipping supplier to start their own profitable business. So time to check the below articles. I have collected the 7 best dropshipping suppliers with high reviews for you.
7 Best Dropshipping Supplier
EPROLO is a one-stop dropshipping platform to help online businesses all around. It is available for eCommerce stores created by Shopify and WooCommerce. The platform provides dropshipping products for shopkeepers. Choose and add products you want to sell on the shop on the page inside.
Besides, EPROLO offers an auto order fulfillment service. After a few clicks of settings, the platform will process the order, and ship packages to customers directly. Shopkeepers can save time for marketing and search engine ranking by using it.
Shopkeepers can design more than 1500+ white label products with print on demand service. EPROLO also provides a branding service to encourage customer loyalty. And It allows people to build their brand by designing package boxes, etc. It almost does all things for you and not take much time to learn how to use it. You can start an online business in minute with a dropshipping supplier like EPROLO!
First-class Express line shipping and globe warehouse fulfilling can help you make happy customers with fast delivery. And EPROLO shipping guarantee allows a full refund if the total shipping time is More Than 30 Days(European countries).
AliExpress is one of the global eCommerce marketplaces. It has almost 150million users and spreads to 220 countries and regions. With 100million products and each category having detailed groups, people can shop for everything online.
Different from Alibaba wholesale model, people can order unit items on AliExpress. It solves the inventory problem, and the majority of the items have no MOQ limits. It is very suited for small dropshipping businesses. But be more attention, sometimes the delivery time will take a month to succeed.
Spocket is another good place to start your online dropshipping business. Located in Canada, it connects customers with thousands of suppliers across the USA and Europe. So that drop shippers can import various merch from EU and US suppliers to their Shopify store.
If you are dedicated to the EU market, it can be your formidable support. And what’s more, Spocket will auto-syn the supplier’s inventory to Shopify so you can be sure products are in stock when your customers purchase.
CJdropshipping is an end-to-end drop shipping and wholesales marketplace for retailers. It sources products from 1688 and Taobao and then automated fulfill the order for you. It also accepts CSV orders which you can place order one click. You can expand your niche anytime with CJ dropshipping hundreds of thousand of top-selling items.
By the way, CJdropshipping has launched a video-creating service for customers. Shooting dedicated videos about trending items can increase store conversion.
If you want all your products and suppliers’ research in one place, Salehoo is a powerhouse of information. It places all dropshipping information on a page so you can choose the best products at a glance.
All of the proven products have a high margin, you can quickly pick the lowest-cost products to sell online. It is another good platform to start your dropshipping business.
Dropshipzone, situated in Australia, is a dropshipping service offering thousands of SKUs across categories to dropshippers with zero membership fees. If you start a business in AU, it will assist with professional customer service for before and after-sales inquiries.
With no stock requested and MOQ limits, it is more suitable for start-ups. And DROPSHIPZONE will update the daily inventory list for you so that you can control the product link on hand hassle-free.
Sellvia is one of the best dropshipping platforms, which provides product sourcing, storing, and packaging to branding and promotion services. You can dropship with plenty and cost-effective products.
Sellvia allows you to pay more attention to USA potential customers because their order fulfillment center is located in California. And the largest advantage is priority process orders within the US. It means you can do 1-3 business days shipping during American. In addition, all of the products come with detailed descriptions and ready-to-go promotions. You can launch instantly and start to sell on your online store.
FAQ of dropshipping business.
Question 1: Is dropshipping legal?
Of course, it is. Dropshipping is an e-commerce order fulfillment used by hundreds of thousands of global business owners. But you should pay attention to the questionable suppliers who illegally use other companies’ intellectual property.
Question 2: Who are the participants in dropshipping?
The dropship business model involves three participants in the fulfillment process – dropshipping suppliers, shopkeepers, and customers.
Dropshipping suppliers are also known as the supply chain. They are in charge of storing inventory and shipping the product.
Shopkeepers are online business owners. They can get started selling with an eCommerce platform or build a website. But they don’t control dropshipping products.
Customers are the receiver of a variety of products. They place orders in the store and pay for them.
The three participants share a correlative relation in dropshipping businesses. Suppliers and shopkeepers are in partnership. The former provides a variety of products to sell online, and the shopkeeper places orders from them. A customer is the one being served.
Suppliers and shopkeepers are in charge of different work to fulfill customer orders and improve customer experiences. Shopkeepers play the role of the bridge. They connect customers with multiple suppliers, who are responsible for inventory management and delivery. The supplier will fulfill the order and ship products to the customer.
Question 3: What is the difference between dropshipping and traditional retail business?
Dropshipping and retail are two distribution models in the eCommerce business. There is a similarity between them. That is, business owners are resellers no matter dropshipping or retail use business model. Both shopkeepers need a supply chain to provide products.
However, dropshipping shopkeepers are different from traditional retailers in several aspects.
First, most dropshipping shopkeepers run an online store. And retailers may run both online and offline shops to sell products at the same time. Brick and mortar retail shops occur in shopping malls and streets, and some have a long history.
Second, the dropshipping shopkeeper does not make inventory management and hand it over to the suppliers. But traditionally retailers stock products, which need a lot of money. It is the most distinctive difference between the two models. Without storing inventory, dropshipping shopkeeper enjoys less overhead cost than a brick and mortar retailer. In addition, he has more time for marketing.
Third, a retailer needs a lot of capital to cover the storage, package, and shipping costs while a drop shipping shopkeeper doesn’t. The retailer controls the fulfillment process. In the drop ship business model, the suppliers handle the work.
Question 4: Do you need a business license to dropship?
It depends on the country and the laws surrounding online business. Canda, for example, doesn’t require a drop shipping business to be registered. You can check with your local lawyer or dropshipping website. If you have a business license, it can be safer and more convenient in a long run. You can register one when you dropship products consistently to sell online.