Definition of Dropshipping

What is dropshipping?  

Dropshipping is a way to market products online more easily, without having to manage or store stock. Your product catalog comes from one or more suppliers, who fully manage the packaging, preparation and shipping of your orders for you. 
Here, your role as a dropshipper online retailer is that of an intermediary. You carefully select the best products at the best price for your customers, and in just a few clicks you offer them associated products that could be useful to them. You handle the shipment tracking and keep them informed. You’re also responsible for your store's after-sales service. 

The specificities of dropshipping

Managing a dropshipping e-commerce website has many advantages, but also some disadvantages. Knowing the specificities of dropshipping from the outset will allow you to get started without any nasty surprises and adapt your strategy intelligently. 

Advantages 

  • Easier to launch at a lower cost

Without inventory and shipping management, the time and costs spent launching your business are drastically less than those of a traditional e-commerce website. 

Once your products have been chosen, your target buyers defined and your communication strategy established, just wait for your first order, and your supplier will deal with the rest. 
The costs of starting a dropshipping store are also much lower than a traditional online store. No storage or warehousing costs. You can therefore redirect your budget to traffic acquisition and marketing. 

  • A large number of products

With the Dropizi extension, you get access to thousands of products on AliExpress, BigBuy, BrandsDistribution, BusyXPro, and Webdrop. You can therefore make your own product selection, but also modify it as you wish (if you no longer want to sell a product, you just have to delete it from your store, you don’t have to liquidate your stock). This freedom gives you a key advantage: you can react quickly to market trends and customer feedback, and thus modify your product selection in a few clicks.

  • Simplified management

Sometimes, managing parcel shipments can be a real headache. With packaging products, printing labels and calculating profitable shipping costs, the "transport" aspect of an e-commerce website can soon become complex. Using a supplier to send your orders saves you precious time and very often allows you to benefit from advantageous shipping costs that your suppliers have negotiated with carriers

Disadvantages

  • Increased competition

The simplicity of managing a dropshipping website leads to one major drawback: increased competition. Because it’s so easy to get started, everyone tries their luck. More competitors generally mean a lower margin. The more people in a market, the fiercer the war on low prices. It’s important to stay competitive. 

  • Harder to specialize 

As the ranges of products offered by dropshipping suppliers are very wide, it can be difficult to make a choice. To be attractive, a dropshipping store must place itself in a niche of specialized products that not many competitors offer. 

  • Quality control is not as easy

Because you don't store your products yourself, you have very little control over the quality of your products and the speed of shipping. Your brand image in terms of packaging, processing speed and product quality may slowly deteriorate if you don't do what you need to do. 
 

How exactly does a dropshipping order work ?

  1. You choose the products you want to import to your store from Dropizi suppliers.
  2. You import your products in one click and customize their description.
  3. You set up a payment method on your store, so your customers can pay you.
  4. When a customer places an order on your store, you receive the transaction in your account.
  5. You then order from your supplier in one click, via the Dropizi extension (so you don’t spend money in advance for ordering your products from your supplier).
  6. Your supplier sends the parcel directly to your customer.
  7. Once your order has been placed, all you need to do is inform your customer in real time of the tracking of their shipment. 

💬 Feel free to contact your Business Coaches if you have any questions!