Friday, December 6

Scam or Legit: What most people won’t tell you about dropshipping

Lessons and insights are often hidden in the period during any turmoil or challenge. While the Covid-19 pandemic and the stay-at-home order have pushed the consumers indoors since March 2020, consumer behaviour has changed drastically. The transition to an e-commerce psyche has brought new consumer habits that are likely to stay after Covid-19 due to its convenience to daily lives. The buyers and sellers can easily connect online with the negligible cost of communication. 

According to a report by Digital Commerce 360 estimates, consumer’s online shopping expenditure with US merchants increased to a whopping 44% ($861.12 billion)in 2020. So how to foster your business and stand out in the competition? 

Dropshipping is a digital platform incorporated with sourcing products, order processing, and product shipment fulfillment. Warehouse service, photo- video taking, affiliate, and API support are other benefits of it. It is a one-stop shop covering all the services related to the dropshipping companies

If you are planning on expanding your business, here’s what you need to know about dropshipping suppliers in the USA:

  1. Diversity 

China has already established a strong e-commerce market with companies like Alibaba and JD. There are many dropshipping suppliers in the industry that have swamped up the market with various products. It is estimated that by 2023 China could represent 64% of the total retail sales market. Even though it suffers overwhelmingly with product variety, CJ dropshipping sets sourcing services for customers to post sourcing requests once they have winning products. As more and more suppliers join in, CJ is expected to reach $557.9 billion by 2025

Autonomy on brand building

Given increasing competitiveness, most suppliers provide a print-on-demand service with no additional charges incurred by the customer. Furthermore, the drop shippers can create and design certain products; for instance, they can alter the product’s colour or add a different logo. In addition, some suppliers customize packaging for the drop shippers, which can help them create a unique identity for their brands. 

Cost savings 

Examine and compare a product you plan to purchase in China with that in the US or European market. You will notice a tremendous price advantage in the one from China. Due to the number of dropshipping suppliers producing the same products, the competition drives down the product prices, giving the consumers a cost-benefit instantly.  

Logistics

The product’s logistics and shipping can face a barrier during a crisis, so it is important to plan to make sure that the customers receive their parcels promptly. Although customers are patient with suppliers, it is your responsibility as a seller to send the products to your customers within the estimated timeframe. The dropshipping suppliers find logistical channels that are operating at that particular period or territory. In dropshipping, choose a reliable shipping method that delivers the product on time, based on customer complaints and feedback, and provides a reasonable price. 

Let’s also look at some of the disadvantages:

Uncertainty in transportation

Some uncontrollable factors like war, natural disasters, or pandemics can cause a delay in supply chain operations. This uncertainty compels the customers to look for alternatives to dropshipping. Furthermore, custom inspections and geographical distances between the supplier and the customer directly influence the period of the shipment.  

Language a barrier

China products dominate in cost; however, there is a potential expense to dropshipping from dropshipping suppliers-communication costs. Communication remains a valid concern among customers dropshipping from a non-native English-speaking country. Misunderstandings and dilemmas in orders can raise severe issues sometimes.

With technological development occurring in every millisecond, a business cannot survive without digitization. If you did not focus on the digital strategy before, start doing so now.

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