According to Forrester Research , the dropshipping market has contributed on 85.1 billion to the e-commerce sales and accounted for 23% of the market. The dramatic growth of Dropshipping can be seen since in 2000s, as the online retail getting popular. Dropshipping is selected to be one of the most common way to fulfill the online orders.
In the nutshell, dropshipping is refers to the retail fulfillment method for online business, which means the seller do not need to stock anything to do business, once they have received an order, their suppliers will ship the orders directly to the customers. Not only for cost-saving, but also lowering the entry barrier to start a online business.
The future of e-commerce relies on the supply chain management automation and Dropshipping will be a iconic move of the evolved online retail.
Let’s move on to see why Dropshipping is the Future of E-commerce
Purchasing Source
Sourcing power determined the price and product categories of a e-commerce firm. Indeed, in the traditional e-commerce fulfillment model might have a better product cost. As the shop is required to purchase bulk stocks.
Under the Dropshipping model, the shop do not need to take any stock and they are free to upload the product and try to resell potential items without any stock budget. The risk is relatively lower and the product variety is higher than the traditional e-commerce shop.
However, dropshipping supplier’s quality is very important, you should not only consider the product cost, but also the shipping time, delivery location and after-sale service.
Low Listing Cost
Most of the dropshipping shop is using different kinds of automation tools to streamline the listing process, from “copy-and-paste” work to 1-Click Import and more.
The listing cost refers not only the manpower that you need in traditional e-eCommerce (For example from taking product photos, writing the product description and upload the product into your e-commerce shop, but also TIME . Time is the most valuable unit in e-commerce.
In Dropshipping world, you can use different automation tools to list the product, mark-up the product and resell them into 1-click to save your manpower and time. The dropshippers will use the product image, product description and warehouse to start their business in simply clicks.
Packaging and Shipping
Most of the e-commerce starter neglected the packaging and shipping matters, once they found out the crazily high cost of international shipping, it might stop you to doing cross-border business.
If you tried to reach out DHL, Fedex , TNT, they are not giving you a great discount to start your business.
The best part of dropshipping, you will use your supplier’s shipping methods and most of them are having very good business discount as they are established business and with speedy delivery time. Your dropshipping supplier will provide you the professional packaging materials, as most of them are doing B2C e-commerce, they will handle your order in professional manner.
E-commerce world changes rapidly
Change – is the key of e-commerce and online world. Dropshipping shop can be modified and changed easily, for example the shipping location, the dropshipping shop only need a few click to change the ship from location.
In the traditional business, changing a shipping location involved a lot of documentation and manpower. Moving the warehouse from here to there is talking about more than 2 months.
In E-commerce world, the one who can adapt the changes will be the winner, make sure your shop is up to the trend and upgrade it time to time.
Conclusion
The dropshipping will takeover the current e-commerce fulfillment model. We expect to see the increasing growth rate of B2C e-commerce in 2019 and also more traditional online retailers will switch to dropshipping model to lower their operational cost.
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