It is believed that the e-commerce online business has sharply development, a surging number of digital consumers in the recent years. As the graph shows below, it can find that the total number of digital consumers are increasingly in the past 5 years and it still has potential growth trend in the next few years.
It can find that so many people are trying to figure out a new way or method to be profitable because the e-commerce market has strong competition among tons of sellers. Moreover, there are some sellers are troubled by higher costs and inventory pressure, which make them step back from the e-commerce or even give up to do e-commerce business. However, as the drop shipping business model become popular in the recent years, many people choose to join in drop shipping business to try to make profits from the e-commerce market. In this post, I will briefly analyse the current e-commerce drop shipping market, and also give you an example to illustrate how is a drop shipping platform can be helped for your ecommerce dropshiping business.
Why e-commerce dropshipping business
As we know that Amazon is one of the biggest online drop shipping website in the world, it can easily find from the following graph which shows the total visits on Amazon is keeping on a high level in the last 6 months. That means there are a large number of audiences to searching for drop shipping whatever for business or individual.
In addition, according the research from E-Dss, it can clearly find that there are approx 30% of online retailers have jump into the drop shipping business because they are kind of believe to make profits from it. Moreover, as a bunch of benefits give away to drop shipping retailers, it is possible to know that a surging number of retailers should starting their drop shipping business in the next few months. The retail e-commerce is a total 300 billion U.S. dollar market in the U.S. only, and it is possible to expect that the number of revenue and profit margin still can increasing in the future development. To conclusion, the e-commerce dropshipping business is worth doing and it still can be profitable in the next few years.
As we know that there are so many pros of doing e-commerce drop shipping business, and I’ll list some of reasons in the following explanation to prove drop shipping business is totally worth doing.
a. Wider product sourcing worldwide. Drop shipping business model allows people to select products in a wider product sourcing, and retailers can freely choose the categories or products for selling.
b. Order fulfillment. It is believe that the order fulfillment is much more easier than the common marketplace selling model. Retailers should not need to worry about the logistic and packaging issues because it should be done in the hand of suppliers or manufacturers.
c. No inventory issues. Most of retailers are worry about the inventory issues because the excess inventory should limit the daily operation of e-commerce business and the future development. However, drop shipping business allows retailers do not need to carry inventories, this is one of the main reason why people jump into drop shipping business.
To conclude, lots of benefits from drop shipping business model may attracting a lots of retailers in the future. Furthermore, e-commerce dropshipping business is worth to do and it still can be profitable for the future development.
Benefits from the cooperation with drop shipping platform
It is believed that a bunch of people may ask a question that is ‘how to start e-commerce dropshipping business’. Basically, join a drop shipping platform is a better way for retailers to start their drop shipping business whoever beginners or veterans. In the following description, I will use Chinabrands as an example to illustrate benefits from the cooperation with a reliable drop shipping platform.
a. Logistic. It can easily understand that logistic is the necessary part of doing drop shipping business. It is believe that retailers need to clearly know about which logistic companies are cooperating with, in order to make sure all merchandises can be safety delivered to end-customers. For example Chinabrands is cooperating with 1,000+ world famous logistic companies such as DHL. Moreover, Chinabrands also build up 100+ global warehouses, which can help retailers to deliver their drop shipping merchandises to the world with lower costs.
b. Technical supporting. There are some drop shipping platforms has a strong technical team for supporting retailers to easily start their drop shipping business. Retailers can even use the most useful and advanced technology at home to do drop shipping business. For instance, chinabrands owned a technical supporting team with 1,000+ staffs. The API system is one of the useful methods for retailers to bulk uploading and downloading products description and images. Moreover, the API system also allows Chinabrands to received orders from third parties and finally do the order fulfillment. That means retailers should not need to worry about the order fulfillment at all because Chinabrands can monitor the online stores from third parties and do order fulfillment by their own.
c. Courses and training before selling. Basically, most of beginners do no know how to start drop shipping business. Those problems can be ‘how to find suppliers’, ‘how to do product selection’, ‘how to do online store promotion’ and so on. Therefore, most of drop shipping beginners may try to purchase online or offline training courses to learn about how to do drop shipping business. However, nowadays, there are some drop shipping platforms may group up a professional team for teaching its members and retailers how to do drop shipping business. For instance, Chinabrands is one of the drop shipping platform to do that. They got so many training courses for teaching their members and retailers to do drop shipping business internationally. These courses including operational skills on different world famous drop shipping platforms like Amazon and Wish, the analysis of store statistics, key words optimization, product selection and so on.
d. Supplying issues. The well-performed suppliers can bring a tons of high quality products, which is the main reason why a online store can get a higher margin. For example, Chinabrands is cooperating with 10,000+ suppliers from the world, and it also has more than 100 categories on selling. It can understand that a well-performed supply chain can ensure retailers making a higher margin whenever now or in the future.
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