We can see the B2C e-commerce growth without any obstacles in these years, since 2000. The E-commerce trend is actually highly related to Dropshipipng business. With no doubt, more e-commerce shops will have positive effect on dropshipping.
As every online entrepreneur wants to kickstart their business without high initial capitals and investment, well… Dropshipping must be the right solution for you guys.
However, since 2017, we have seen a lot of dropshippers saying that Dropshipping business is dying.
Was it true that drophsipping is not working in 2019 ? Let’s find out here.
Table of Contents
Is Dropshipping business no longer profitable ?
The history of dropshipping started from 1950s, this model is used to lower down the cost of fulfillment process and the resellers do not need stock to start their business.
With the e-commerce trend, more online shops find out the advantages of dropshipping business and leaded the booming growth of dropshipper.
Moreover, more dropshippers are using China supplier to fulfill their order, selling products on their online shop whilst the orders will be shipped from China. The low shipping time and bad quality of products lead customer complaints and an online shop without good customer feedback is the fatal error the e-commerce ecosystem.
Who should be responsible for this ? Of course , its the online shop owner, as they failed to find the quality suppliers to fulfill their order.
Dropshipping business should be profitable and never die. As its a retail fulfillment method, the reason why you are not getting profit, its because you are fail to provide service guarantee to your customer.
Finding Quality dropshipping supplier is crucial in your dropshipping business
Quality suppliers are your point of difference, no dropshipping business is sustainable, when you do not have a quality suppliers .
If you are looking for reliable supplier, you can look for dropshipping marketplace that offers suppliers verification service for you. Then, you can do business with the dropshipping suppliers without any doubt.
Dropshipping market is full of Low Quality Product
Stop selling low quality product, especially when you are targeting well-developed countries like the United States, United Kingdom and Australia.
No customer is willing to wait for a cheap item for 30 days. Customer only wait for products that offer Product values, but most of the current dropshippers are selling low quality and low value items (the product cost is low) and failed offer fast delivery.
When the suppliers are offering free shipping of a low ticket items, you can expect the shipping time will be SLOW, as no supplier will use DHL to deliver a USD$ 3 product to your customer.
Try to sell high-ticket items are find suppliers that willing to offer fast delivery .
The Pros & Cons of dropshipping as a business model in 2019
Advantages
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- Initial Investment : Dropshipping business no initial capital in stock or warehousing, indeed you can dropshipping business in $0 cost. (Relatively harder in 2019, due to the competition in Social media and Search Engine). If you are using e-commerce website, you can also consider to use Woocommerce, Prestashop and Opencart, those do not need any subscription payment to start your e-commerce website.
- Simple business : The concept of dropshipping is very simple. All you have to do is to sell items and your suppliers will ship the items to your customer directly. Unlike the old way, you have to find your buy the packing materials , sign contract with a logistics company to let them deliver your item.
- Diversity business : Dropshipping is not only for a simple product, but it can be virtual product, or Print on Demand product. The dropshipping business can be changed and revised based on your need and supplier’s offer.
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Disadvantages
- Unreliable supplier : The supplier is the key of dropshipping business, as they provide the fulfillment service and get in touch with your customer (on your behalf). this industry has more than its fair share of scammers and fly-by-nights. Make sure you have to communicate with your suppliers and conduct research on their backgrounds before doing business with them. If not, you are definitely wasting your advertising investment to sell their products.
- Low Margin : The dropshiping price is always higher than wholesale price and it makes sense. As more quantity will have more discount. We all understand this logic, so you have to be aware of your advertising spending to see if the profit margin can cover the spent and cost. To choose high-ticket items to dropship, will offer you more profit margin. For example, 10% of product margin of a $1000 product, then you will have $100 for margin. Vice versa, a $10 product can only gives you $1 margin.
Conclusion
If you want to start your dropshipping business, you will have to check on different source to make sure your suppliers are reliable.
Look for a suppliers or dropshipping marketplace which can reduce your risk by offering reliable suppliers and quality products. This will offer you a competitive advantages among all dropshippers
If you want to dropship branded & authentic items , join us !
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