What Is E-commerce Dropshipping?

E-commerce dropshipping is trending. If you’re already an eCommerce entrepreneur, you’ve probably realized that implementing all the right processes and procedures from start to finish can tire you out. After all, the responsibility for fulfilling customer orders rests entirely with you.

This is exactly where E-commerce dropshipping can come in handy now. E-commerce dropshipping is a great option because it has very low startup costs, but the potential benefits are huge.

We’ve created this page so you can take your first steps in dropshipping and generate new customers.

What Is E-commerce Dropshipping

The E-commerce dropshipping model has always been popular. Especially for entrepreneurs looking for efficiency and low overhead, dropshipping is the first choice. Are you still wondering what is E-commerce dropshipping? Dropshipping is a form of e-commerce, but it follows a different process.

Consider a scenario like this: You have an online retail store that offers customers items for sale. But you don’t have these items in stock, but you have partners – wholesalers or manufacturers. When a customer places an order, you pass the detailed order information to your partner. And they will send the goods to your end customers. The customer is satisfied with the goods received. This completes a dropshipping process.

It is not difficult to see that there are three main roles in the dropshipping model: supplier, retailer, and customer. The whole model is simple and convenient: the retailer orders the product from the supplier, but the supplier ships the product directly to the final customer. No need to store products yourself and try more new ones.

So it’s easy to see the benefits of dropshipping: you don’t need to store products and deal with much, but can try more new ones. A reliable third-party supplier will handle all order issues for you.

What is E-commerce Dropshipping Service?

Dropshipping Service

Dropshipping service can be understood as an order fulfillment option. Think of it this way, you own an e-commerce store and you have a third party provide product inventory management and customer order distribution on behalf of your e-commerce store. Third parties automatically fulfill customer orders.

Dropshipping Fulfillment Companies

In the dropshipping model, most eCommerce sellers choose a third-party fulfillment company as their partner. These dropshipping fulfillment companies perform everything from receiving customer orders, packaging, and shipping, to global delivery. And some fulfillment companies also support integration with the seller’s online store or e-commerce platform.

What does the Dropshipping Service Include?

Automatic packaging and deliveryDropshipping services include the automated processing of customer orders through to delivery. These third parties provide turnkey solutions that include automated fulfillment of orders, from receipt to packaging to shipment. Honest FulPhilment Solutions is no exception.
Comprehensive trackingReal-time tracking is an integral part of direct sales. You need to keep track of the progress and location of your orders. Therefore, comprehensive tracking information is an integral part of the service for all your customer orders, and it will inform you of the shipment.
SupportOutsourcing can be a terrible business. Honest FulPhilment understands the importance of sustained and responsive support. Therefore, we provide real-time chat six days a week so that we can answer any questions you may encounter.
Global order fulfillmentThird parties will ship your products all over the world, no matter where your customers are. Honest FulPhilment has many warehouses all over the world, which can ensure that your order is fulfilled on time.

Pros and cons of E-commerce Dropshipping

Pro of Dropshipping
Get started faster with no initial investment
Low capital tied up in inventory
Lower sales risk
Can operate globally
Can quickly replace new products
Increased focus on marketing and sales promotion
Con of Dropshipping
Limited control over the supply chain
Lower profit margins
Less impact on customer satisfaction
Lower margins
Cross-selling is made more difficult
It is more difficult to build your own brand

The advantages of dropshipping obviously outweigh its disadvantages. There are some good third parties that can help you overcome the shortcomings of dropshipping. For example, some fulfillment companies offer branding and customization services. This is good for you to create your own brand.

Dropshipping vs E-commerce

E-commerce is the general term for selling goods or services online. Refers to the online retail business. It takes the form of selling and shopping online. Such as Amazon and Alibaba.

Dropshipping is not a replacement for eCommerce. Just another e-commerce business model.

We can differentiate dropshipping and e-commerce by the way dropshipping stores and e-commerce stores work.

Dropshipping vs E-commerce
Dropshipping
Online retailers build online stores.
Upload products, but do not own inventory.
After the customer places an order, the retailer places the same order with the supplier.
The supplier packs and ships the merchandise.
E-commerce
A customer visits an online store and selects a product.
The customer checks out the product through the online payment method.
The retailer picks up the goods from the warehouse.
Package the order and label it with the customer’s shipping address.
The shipping company delivers the product to the customer.

Obviously, in traditional e-commerce, sellers source products and stores them in warehouses. And complete order fulfillment. Whereas in the dropshipping model, the sellers order the product from the supplier after the customer places the order and does not have inventory. The third party does all the order processing and shipping.

How to Start E-commerce Dropshipping for Free

Decide your niche market and product

It is worthwhile to spend time researching niches in the target market. Here are some suggestions:

Focus on products related to hot spots and popular events.
Look for items with positive reviews.
Browse websites related to dropshipping and check their top product list. For example, you can check out the hot selling on AliExpress for inspiration. They may include all categories, and each category will give you some inspiration.

Here are some tips and more ways to find the most profitable niches, click to view.

Find reliable suppliers

Now that you know what to sell, you should find suppliers that can be used for the product.

You can usually find suitable suppliers on e-commerce platforms. Such as AliExpress. It is one of the most famous and popular dropshipping platforms with a large number of sellers. It offers the largest directory of qualified suppliers. Most of these suppliers are located in China, and the prices are unbelievably low.

Finding a good supplier is not easy. Relying solely on e-commerce platforms is far from enough. You need to know more about how to find quality suppliers.

Set up your free online store

Usually, you can set your online store on some perfect dropshipping platform. Shopify and WooCommerce are the two top platforms for free drop shipping that stand out:

Shopify: Shopify is the go-to choice for those who want to set up a store quickly and easily.
WooCommerce: If you have an existing website using WordPress, WooCommerce is a free plugin that provides powerful eCommerce functionality.

Of course, if you have the skills to build an online store for yourself, you can really get an online store for free. Sites like Square Online, Big Cartel, or WooCommerce all offer free domain names or free themes, so you can use them to create and build a dropshipping business without any financial investment.

What’s more, you can start an online store on your social media accounts, such as Facebook, Instagram, etc.

Start marketing your product

Your business is now ready to sell your product. The important thing is that you don’t need to invest so much money to promote your products through them. Here are a few ways to market for free:

SEO. Keyword optimization can get potential customers for free. But it takes a long time.
Social Media. People discover, learn about, follow and buy brands on social media. So you can share your products or upload videos on platforms like Facebook, Instagram, and LinkedIn to attract customers.
Email marketing. Make sure your website captures visitor data and builds a customer database. Targeted advertisements are then delivered to email addresses. But avoid being overly promotional, and always offer something that actually works for the recipient.

Conclusion

Now is the perfect time to get into the dropshipping business. Whether you are starting a new e-commerce dropshipping business or looking to use dropshipping as a way to support your existing eCommerce operations. But how to ensure your dropshipping business is successful? And how can you surprise and delight your customers? You definitely need the help of a good supplier.

Honest FulPhilment can provide you with the best dropshipping products. All order fulfillment work can be easily handed over to us. If you still need customization and branding services, you can also contact us now.

More about E-commerce Dropshipping:

How to Start an E-commerce Dropshipping?

What is e commerce and dropshipping?

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