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eCommerce Drop Shipping Business Model

eCommerce Drop Shipping Business Model

The field of e-commerce has witnessed a great development during the past few years, and expectations indicate that this field will witness an increasing development during the next few years, where expectations indicate that the total revenues of e-commerce will reach $ 4.8 trillion by 2021, according to “Statista” website for statistical data.
Based on the aforementioned, competition in the field of electronic commerce is expected to increase during the coming period, and it is considered one of the most prominent trends that have been followed since the beginning of this year is the sale through the retail chain “Dropshipping”.

Dropshipping is a very suitable business model for everyone who wants to enter the field of eCommerce but does not have enough capital to purchase, store and sell goods directly to customers online, in which case he can play the role of intermediary between customers and merchants who have stock of goods by receiving requests buying from customers online and transferring them to other electronic stores that have stock of products to be shipped directly to customers, in exchange for getting a commission for every sale made through it.

 Dropshipping-business-mode

In a report of the “eCommerce Fuel website“, the performance of 458 online stores on the Internet was analyzed and it turned out that 16.4% of these stores depends on the method of selling via the retail chain Dropshipping, i.e. they do not have stock of goods but rather play the role of intermediary between customers and stores that have stock of products, as it turned out This method has achieved remarkable growth of 32.7% compared to last year and also achieved a conversion rate of 1.74% instead of 1.29% last year.
Selling through multiple channels: It is well known that shoppers, in general, do not buy through one channel only, but there are several possible channels to complete the purchase.

While, a report of “Bigcommerce”, in which a survey of three thousand online shoppers worldwide was conducted, it was found that 45% of them had bought from an independent online store and that 78% of them had bought from Amazon and 34% had bought from E-Bay. Social media platforms had a role in completing purchases, with 11% of these shoppers reporting that they made purchases from Facebook merchants and 6% of them made purchases via Instagram and 4% from Snapchat.
Therefore, it is important for those working in the field of e-commerce to ensure that it has a distinctive presence in the sites visited by potential customers interested in its products in order to facilitate access to them and purchase the products they want.

Dropshipping is great for entrepreneurs because it doesn’t demand as much as the traditional retail model. You don’t have to open a brick-and-mortar store, pay overhead, and stock products. Instead, you open an online storefront and buy wholesale from suppliers who already have products and warehouse space. Dropshipping is easy to start. You don’t need to be a business guru to get started. In fact, you don’t even need any prior business experience! If you take some time to learn the basics, you can get started quickly and learn the rest as you go along.