Used by the largest e-commerce sites in the world for many years, dropshipping is a new way to sell and buy large quantities of products for low prices.
Focus on dropshipping and its benefits for your business.
What is dropshipping?
What is translated into French by "direct delivery", or dropshipping, is a three-party system where a customer places an order on a distributor's website. The latter transmits the said order to a supplier or wholesaler in order to ensure the delivery and the management of the stock.
2 major elements define the dropshipping, whatever its form:
- The online merchant generates sales by specializing in its core business, namely product distribution.
- The wholesaler or the supplier takes care of the production as well as the sending of the products sold by the distributor. The supplier is an expert in production and logistics.
Advantages and disadvantages of dropshipping
A lack of logistics
By using dropshipping in your merchant activity, you no longer have to manage inventory or the preparation of packages, the packaging of boxes and even less shipping.
It is indeed the wholesaler who takes care of all this.
Thanks to this reduction in tasks — and therefore a significant time saving — you can focus on the distribution of your products.
Your only goal is then the following: to make sales and set up effective and appropriate means of communication.
A relatively low investment
Launching an e-commerce site often requires a certain investment, in time, energy and money.
Indeed, inventory management represents a significant part of a merchant's costs.
But when you sell products that you don't stock, the financial risk also becomes zero. The only expenses to consider are on the marketing and communication side.
With dropshipping, the supplier focuses on its supply chain and lets the distributor (you or the e-merchant) promote its products.
Disadvantages of dropshipping
Dropshipping also has its dark side.
A risk of addiction
Indeed, there is a risk of dependence vis-à-vis the platform, that is to say that you will have to comply with certain requirements and conditions of these giants that represent eBay, Amazon, Alibaba, Cdiscount or Rueducommerce to name but a few.
Each platform has its specificities: content to be written for product sheets, percentage of commissions on sales made, restriction of delivery times, etc.
And if you do not comply with these conditions, you will simply be excluded from the marketplace.
Products similar to the competition
By selling products from catalogs of dropshipping suppliers, there is a strong risk that the competition has put them on sale too.
This is all the more true when you decide to call on professionals who have not chosen their suppliers.
Little control over the shipment of the product
In terms of logistics, you do not always have control over the shipment of your products. This can certainly be an asset, because you do not take care of it, but also a disadvantage.
Why ? You know little or nothing about the quality of the product or the quality of service for shipping.
With Westock, you benefit from reliable, serious and transparent services for a dropshipping in France and in Europe.
