We use this common phrase and question because everyone is interested in it. Right in the beginning, we must say: dropshipping is not dead. Of course, it is not. It is having its best period currently. It is not just a great trading model for newbies but for those as well who would like to extend their online store’s product range easily, to offer more goods besides the one they have in physical stock.
Dropshipping has started to become popular around 2015. Before that time it still existed but people weren’t familiar with the name of it. In 2021 it is still new for many people all around the world which is not a problem at all.
You just have to make sure you learn information from more sources and that these are trusted as well to make sure you will not just burn money by following unrealistic, misleading guides from so-called experts. You have to know this trading model from the inside out to be able to provide an outstanding service to your customers and to be able to stay alive with your business in the long run.
8 Reasons Why Dropshipping is Not Dead in 2021
We cannot write this article about the role of dropshipping on the online market this year without mentioning what the pandemic brought to our world and how it changed people’s buying behavior and entrepreneurs’ ecommerce activity. Briefly, we can say that even if before the pandemic people all around the world have started to be interested in buying online more, it started to be more present when everyone had to stay home to be safe. As for business owners, they realized niches on the market, and they either started a new company selling products online, or they turned their physical store to be available on the internet as well.
1. Buyers’ Trust Has Grown
Buyers’ trust has grown in getting products from online stores which means there are more people buying from the internet, so for you, it is worth opening an online store. With dropshipping, you can start your new business, or extend your already existing range with low-risk. In general, customers find online services more reliable as they gained advantageous experiences. You can hop on this trend. You just have to manage your business on the right way to not be just one in a million without any sales.
2. Statistics Predict a Market Growth Rate of 28.8%
Statistics predict a dropshipping market growth rate of 28.8% from 2018 to 2025. According to Grand View Research, “the global dropshipping market size was valued at USD 102.2 billion in 2018 and is expected to register a CAGR of 28.8% from 2019 to 2025.” It shows that you are still in time to start your dropshipping business, as it is in a trending period now, and if you do it right and not following false guides you can have success with your company.
3. Best Way to Broaden The Product Range
Dropshipping is the best way to broaden the product range of your already existing online store if you are on the market for a longer time and you have physical inventory. By broadening your store via dropshipping products you have a low risk regarding selling products. You don’t have to be afraid of not being able to sell every good you buy in advance and also you can feel free to offer seasonal products in your online store.
4. More Dropshipping Suppliers Available
The dropshipping market is growing and it doesn’t just mean the number of new online stores is increasing but the number of dropshipping suppliers is also getting bigger. Wholesale suppliers realize there is a good opportunity for them as well in the trading model dropshipping. Like this, you can pick from a bigger selection of companies, and there is a bigger chance that you can sell unique products in your market which have not been available there yet.
5. Automated Solutions for Smoother Work
You can use fine-tuned automated solutions for smoother work for your online store. On platforms like Syncee you cannot just find products and suppliers partners, but the system also takes care of the automated product uploads, updates, and order data synchronization besides the many further user-friendly features it provides. In the past, it was way harder for stores to manage product-related tasks, but now it is much easier.
6. Still Enticing That There is No Upfront Cost
It is still enticing for retailers that there is no upfront cost in physical product inventory when they choose dropshipping. It is still a powerful reason for many people to choose dropshipping to start a business with. The reason why many people try opening an online store with dropshipping is that it is easy to start with, however, do not forget that being successful and staying alive with the business, in the long run, is the toughest part.
7. More Options in Online Payments
There are more options available in online payments which is beneficial for both the customers and retailers. Also, people realized paying online got safer, their senses also developed on what to pay attention to before buying products from anywhere. Online payment processing got easier than it was ever before. Furthermore, on the ecommerce platforms you use, you can pick from more payment services.
8. Change The Product Portfolio in No Time
You can change the product portfolio in your online store in no time with constant low risk. You do not have to be afraid of not being able to sell your physical inventory. Moreover, if you notice that after months the products you sell are not something your customers really demand, you can change your product range with less stress. Also, you can always try something new without fear and lost money.
Keep in Mind:
Do not forget that you are not the only one who is about to start a new online store using the dropshipping trading model. The competition on the market is rapidly growing so you have to find an absolutely winning product idea, a great niche on your target market. It is recommended to also research the market on what the customers’ needs are, and keep in mind to pick a product range you are also a fan of so your enthusiasm toward your business can stay high. Never stop learning. Always check your market, and always fine-tune your business strategies based on your experiences.
How To Run Your Business On The Right Way With Dropshipping?
Lack of understanding is a big problem among those who open an online store both with or without working with dropshipping. There is also much false and misleading information on the internet about this trading model. It is important to learn from more sources when you are about to start a business. Let’s see what we recommend you to consider if you want to run your online store with dropshipping on the right way.
A, Work With Real B2B Suppliers: If you are not sure if a supplier is actually a real one or just another reseller just like you, always try to find information about them on the internet, and you can also talk with them to get to know their business more. The safest to do is to look for suppliers on B2B marketplaces.
B, Unified Selection, More Than a Dozen Products: It can be better for your business to sell not just a dozen products but more. Like this, you can reach more potential customers and it is more likely that they will place any or more items in their shopping cart. Make sure you have a unified selection of products to look professional.
C, Work With a Few Dropshipping Suppliers Only: It is more advantageous to pick products from only 1-3 dropshipping suppliers than from 20. If a customer orders more products and those are from different suppliers, they will receive more parcels on different days and they will find it odd. The solution for this is if you want to work with more suppliers to make sure they offer completely different products and it is not likely that a customer will place goods in their cart from those different brands.
D, Don’t Resell Products From B2C Marketplaces: As its name shows, B2C is a model between Businesses and Consumers. You are not a consumer, you are also a business. That’s why you should pick B2B sources. Don’t pick products from AliExpress or eBay and from resellers there. You can find consumer prices there and it will not be worth reselling goods from there.
E, Choose Local Suppliers: Working with local suppliers you can make sure you can offer fast shipping to your customers which is one of the most important factors in the life of a successful online store. Pick products from your country or from a region close to you but not from overseas. Like this, you can avoid language and communication problems as well.
F, Pick Products There is Actual Demand For: Yes, with some products the market is oversaturated by. That is why you need to check the market demands and fine-tune your selection for your well-defined target audience and the local needs. If you make a general product unique, it is an ultimate winning formula for you.
G, Market Your Online Store: Without any marketing activities and advertisements, remarketing customers will not find you. Running ads is not cheap however it is a core element of a business strategy of an online store, especially if it is a completely new business, but later as well. Wrong targeting can also ruin your strategy. Furthermore, make sure your store is neat with every essential written content and great visuals, design.
We do not say there are no hardships in dropshipping. However, there is nothing that cannot be solved. If you think the shipping cost and fee are high, choose local suppliers. If you think the quality of the products is cheap, choose another real partner. If you experience customer support not being fast and helpful, before starting working with a partner, talk with them and make sure you can trust them. If the refund takes a longer time than usual, talk about how you can make it be smoother with your partner.
Looking for Dropshipping Suppliers and Products?
Check Syncee Marketplace which is a global directory of millions of dropshipping products from pre-vetted suppliers from the US/CA/EU/UK/AU + more. The B2B platform and application Syncee manages automatic product data uploads and updates and also takes care of the automatic order data synchronization.