Why Dropshipping is a Great Business

Dropshipping is a business model that allows the vendor to fulfill sales orders from a third-party supplier and have them shipped to the address directly. The vendor does not have to bear the cost of storage facilities as they aren’t required to store any products in their inventory. They’re only required to advertise the product, market the brand, and establish a strong online presence.

Here’s answering some frequently asked questions consumers have for dropshipping:


Is Dropshipping a Profitable Business?

The profit generated is usually a result of the cost difference the vendor purchases the products at (from the wholesaler or manufacturer) and the price they decide to sell the product. Due to the lower cost, dropshipping has become profitable a lot faster than any other business model.

Can I Incorporate Dropshipping into My Business?

Dropshipping is largely recommended for eCommerce business models. Starting a dropshipping business depends on how much sweat equity (i.e., contribution to the building process in terms of toil and effort) you’re willing to put into it.

After you have established an online presence, incorporating dropshipping is likely to be similar to launching a new product. You’re going to want to research what kind of products fit your business strategy, whether the current market is ready to accept this new product, and if this is what consumers want. Next, if the product you’re selling is already in the market, research what prices your competitors are quoting to strategically draft your financial plan. You’ll need a supplier (like E-Commerce Express) to finalize the fulfillment process and list the products in your online catalog. All you need to win it after is to advertise and market the product adequately.


Is Dropshipping Legal?

Dropshipping is legal as it’s a legitimate method of order fulfillment — it minimizes productions costs, lessens the risk of startups with greater flexibility, and reduces storage costs without compromising product offerings.

However, you may run into legal troubles depending on who the supplier is. For this reason, it’s best to consult a lawyer prior to dropshipping or at least protect yourself with a dropshipping agreement contract.

You’ll also need to register your eCommerce business once you start making sales. This is because payment providers require businesses to prove credentials. However, this step can usually be delayed up until you start making sales consistently.


What are the Benefits of Dropshipping?

With more customers shopping online, entrepreneurs are bound to consider dropshipping as a reliable method to generate greater profits. The business owners are no longer to invest thousands of dollars on leasing or purchasing warehouses after the business’s launch. Moreover, cash flow increases significantly as you’re not required to purchase the product until the customer confirms the purchase. Dropshipping streamlines business operations as retailers can operate from virtually anywhere. This is also a time-saving business model that has great potential for increasing lifetime consumer value to businesses. Best of all, if your business ever doubles, you never have to worry about hiring a bigger team to accommodate all demands in a timely manner.


What Makes E-Commerce Express the Best Order Fulfillment Service?

E-Commerce Express is a China-based eCommerce fulfillment service provider that helps businesses navigate through the challenges of the eCommerce industry with an array of services. Their services include product sourcing in China, 3PL warehousing solutions, 3PL order fulfillment services, 3PL logistics service provider, branded and custom packaging, E-commerce fulfillment services, Amazon FBA prep service, and e-commerce model photography. This is a team of highly qualified members that handle all supply chain operations adequately.

E-Commerce Express connects businesses to high-quality product suppliers in mere 24 hours or less. Once the vendor confirms the order, this fulfillment center begins to purchase products, giving you full access to the ERP systems and storage details to ensure your investment is safe. Upon the arrival of products from the manufacturer or wholesaler, the batches are inspected free of cost by experts and stored (free of cost for the first 30 days) as per the specifications of the automated warehousing management system. As and when customers place orders via the online stores, this order fulfillment company processes the sales orders by picking, packing, and shipping them across multiple shipping lines to reach the customer at the earliest. You can even track the shipment with the tracking number given to you. Services don’t end here — E-Commerce Express handles returns by refurbishing, repackaging, or restocking the item in their storage facility until the next order is placed.

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