Dropshipping is a retail method, which saves merchants from having to keep items in stock. By purchasing a membership with a wholesale dropshipper, you can avoid the hassle of keeping inventory and managing order fulfillment. All you have to do is to send customers orders and shipping details to your supplier, who will fulfill the order for you. Dropshipping is easy to start without much up front cost. Also, you do not need to quit your job to start your drop shipping business. However, it is important to note that, like any business, success is not guaranteed. In order to succeed, you will need a quality website, marketing, and customer service. In this article, we will discuss dropshipping business opportunities on Shopify. We will also compare it to E-Commerce marketplaces such as eBay and Amazon.
Check out my previous article on where to look for drop shipping business opportunities.
Selling on Shopify Brings Convenience, Freedom and Minimal Risk
Shopify allows online merchants to create their own online store even if they lack the technical skills. It is an alternative to selling through third-party sellers such as eBay or Amazon. It is quite easy to manage and design your online store with Shopify. Besides, it allows you more control and freedom than third-party sellers when it comes to running your store.
Back in the day, starting a store would cost a lot of time and money. With traditional brick-and-mortar stores, you have to stock all your products and commit to them until you sell them. E-commerce is clearly a lot different than brick-and-mortar. It considerably minimizes risk. If things are going south, you can always close your online store and stop paying for a Shopify account. Besides, if you are having doubts pursuing dropshipping business opportunities, you can simply cancel your membership with your supplier(s) to stop paying for their services.
How Shopify Compares to Amazon and eBay
Thoughtful comparisons always help us make important decisions. Choosing your e-commerce marketplace may be just as important as choosing a location while opening a traditional brick-and-mortar store. After the reliability of your supplier(s), choosing a marketplace is the second most important factor determining your success in your dropshipping business. We hope that our carefully considered comparison will help you make the right decision for yourself.
Dropshipping on Amazon or eBay
It is very easy to start listing your products both on Amazon and eBay. With both marketplaces, you have an enormous audience, who are ready to shop. Although there is tough competition, you may be able to get good market share, if you can keep your seller rating high and offer good prices. So, you do not have to spend a lot of time and money on marketing and SEO as you would while creating your own online store through Shopify. However, both Amazon and eBay have listing fees, which reduce your profit margins. On the other hand, there are no listing fees if you sell in your own online store using Shopify.
The listing fees are perhaps the biggest problem with third-party sellers. In order to sell on Amazon, you are charged a monthly fee of $39.99. However, it does not end there. There are listing fees ranging from %10-15 depending on the product type. On the other hand, eBay also has different listing fees for different products. These fees significantly impact your profit margins, which can already be pretty low with certain products in the dropshipping business.
Another problem with selling on marketplaces is lack of customization. With both Amazon and eBay, you have to follow their templates. This reduces your chances to create a unique store with different designs and branding.
An interesting issue with selling on Amazon is that you are competing with Amazon itself on their own ground. Competing with Amazon on Amazon is not a fair game for small retailers. I point this out simply because Amazon has been accused of using their merchant`s sales data so that they can spot selling trends and improve their own involvement in the niche, slowly pushing out other merchants out of business.
Dropshipping on Shopify
We believe that the biggest advantage of selling in your own online store is the absence of listing fees. Lack of these fees can really boost your profit margins, allowing you to stay ahead of your competition. Another advantage that comes with Shopify is that you have much more control over your online store. You can easily design it and add product information to better inform your customers about the items you are selling. This way, you can engage your customers and establish a long-term connection with your customers. You can portray your store as a social purpose business with a clear social mission apart from your economic goals.
The independence comes with problems. You can not rely on the third-party sellers’ vast audiences. So, you have to figure out a way to drive traffic to your online store. You can achieve this by adding value and creating unique stores, perhaps with a social mission. Compared to Amazon and eBay, you would need to spend much more for marketing. Ideally, you would also need to spend time and/or money for Search Engine Optimization practices so that your online store can show up in the first pages of Google or other search engines.
To conclude, Shopify saves your from listing fees and feels like a real business because you have more control over your online store. You can establish better and long-lasting connections with your customers and earn repeat business. On the other hand, you would need to spend more time and/or money to drive traffic to your store. However, if you have the time and/or the money necessary, Shopify will be the right choice for you. As a small merchant, you may not be able to afford your time and money for marketing and SEO. In that case, you may want to choose Amazon or eBay for their readily available vast audience.
If you know which marketplace is the right one for you and ready to start drop shipping, let us supply you with true wholesale prices, fast transit times, and reduced shipping costs. Learn more about the opportunities we have to offer.