Views:364 Author:Site Editor Publish Time: 2021-04-13 Origin:Site
As we initially warned, e-commerce drop shipping is not a perfect and stress-free way to build a successful business. This method has some obvious advantages, but there are also some built-in complications and problems that need to be solved. Hence, some small business owners want to know whether it is worth it to do e-commerce through drop shipping. So, is direct dropshipping worth doing? In this article, we will talk about this topic and hope it is helpful for people who want to be the drop shippers.
We know that drop shipping is a foreign trade term, which is a method of cross-border e-commerce supply chain management. Retailers do not need merchandise inventory, but give the customer order and shipping details to the supplier, and the supplier sends the goods directly to the end customer. And retailers earn the difference between wholesale and retail prices. The biggest difference between dropshipping model and the standard retail model is that sellers do not need inventory. On the contrary, merchants purchase inventory from a third party which is usually a wholesaler or manufacturer based on demand to complete the order. As we mentioned that cross-border dropshipping as a unique sales model has great advantages, but also has disadvantages. But, we believe that after careful planning and consideration, most of these problems can be solved, and some small business owners also can do dropshipping business through the dropshipping mode, and it is possible that they can become a unicorn in the cross-border e-commerce field.
Is There too much Competition?
With the development of business, it seems that many industries are saturated. Some small business owners are always afraid that there is too much competition. To be honest, competition will only increase. But compared to Amazon shop, you may not know that up to 41% of sellers on Amazon worldwide are from China, and Chinese sellers are the most enthusiastic about Amazon shop. And even until now, dropshipping is still far less crowded than Amazon sellers. Of course, it's not as absurd as those Amazon sellers who are crazy to have malicious competition.
Will the Sino-US Trade War Affect Dropshipping?
The impact of the Sino-US trade war on cross-border e-commerce dropshipping sellers is obvious. And this kind of confrontation that hurts the enemy eight hundred and one thousand is ultimately borne by the merchants and consumers. The core advantage of dropshipping lies in China's cheap products followed by lower logistics costs. But most domestic media will tell you that the impact is very limited. Okay, but it doesn't matter. Compared with the absurd malicious competition of Amazon sellers, this impact is little. So, don’t worry about it if you want to do drop shipping.
We believe that this model has a great future, as long as you work hard, and make full preparation before doing it such as choosing the right products and suppliers etc., and most problems can be solved. And we believe that the no-source model can also make you a unicorn in the field of cross-border e-commerce.