July 4, 2020

What are the channels for dropshipping?

Usually we mention dropshipping, which is shopify by default. In fact, in addition to shopify, we have many platforms available.

  1. Ebay

Ebay is known as the world’s largest online physical auction site. Today we talk about the advantages and disadvantages of using it for dropshipping.

Advantages:

① Easy to operate. Creating an account on Ebay and adding products is a simple and easy process. You can quickly invest in Ebay and showcase your products.

② Wide audience. You can reach many online users on Ebay, which means that thousands of customers can see your product.

③ Low promotion costs. Because the Ebay platform itself has huge traffic, this will save you the cost and time of doing various promotional activities such as SEO and marketing.

Disadvantages:

① Pay commission. On Ebay you need to pay a certain percentage of the transaction order to the platform as a commission. In the dropshipping market, the profit margin is very limited and transparent, and this commission is another expense for you.

② Continuous monitoring. As an auction market, Ebay requires you to constantly monitor and re-display the products you want to sell. Although there are some tools that can be operated automatically, it is definitely not as simple as operating on your own e-commerce website.

③ Unable to establish long-term customer contact. Ebay doesn’t care about retailers, they only care about products. How you communicate with customers, establish your personal brand, and store design, etc., will be limited by the platform. Most buyers will probably never buy from you again. The goodwill you build through quality service may be lost.

2. Amazon

Although Amazon does inventory and sells products, most products are actually sold by third-party retailers through the Amazon website. Therefore, it is also one of the platforms that can be used for dropshipping.

Advantage:

① The advantages of doing dropshipping on Amazon are similar to eBay: it is easy to get started, can be directly targeted to a wide audience, and there is no need to worry about marketing or SEO.

② Amazon also has its own order fulfillment warehouse-FBA. In this way, in addition to dropshipping products, you can also replenish your own products without having to deal with packaging, transportation or storage issues. Zh

Disadvantages:

① Commission fees. This is also the same as Ebay. Amazon’s commission varies depending on the product type, generally 10% -15%. If your profit is low, this commission will make you worse.

② Disclosure of sales data. Amazon can see all your sales data, from top sellers to overall sales at a glance. Because it uses this data to identify good sales opportunities, strengthen its performance in niche markets, and eventually crowd out other retailers in the market.

③ Cannot be customized. Like Ebay, you cannot customize it. Everything you do about branding, store design, and marketing will be limited by the platform, which makes it difficult for you to personalize.

Having said that, many people definitely think that the platform must charge commissions, and they can’t establish their own brands. Why not build my own online store?

There is no third-party cost to do in your own online store. You can design your own store to create a brand, and you have greater control, but also have disadvantages, such as where does the traffic come from? You are responsible for the drainage through marketing, SEO, and paid advertising. The capital cost or time cost is relatively large. You should be willing to invest for a long time to promote the development of new stores.

These common channels listed today are all pros and cons, but they can all operate dropdropping. You can choose one or more combinations to become the one that suits you best.

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