Introduction
Ecommerce with drop shipping both are worthy and of equal importance. In eCommerce, it is working on expanding the market for individuals. Hence, they look to make money online by selling various products. Consequently, in drop shipping, the seller does not invest in inventory, so in this way, the start-up amount is meager.
Drop Shipping Business
Drop shipping refers to the business model wherein the business fulfills the order without keeping the goods in stocks. When the customer places an order of a product with the company, the charge is redirected to a supplier who, in turn, supplies the ordered goods.
In short, drop shipping facilitates a commercial transaction between a supplier and a customer. It provides suppliers extra business with minimum cost and effect. However, the Drop shipping company, s reputation depends entirely on the quality of the goods or services provided by the supplier.
Therefore, the business needs to find suitable suppliers providing quality goods services at affordable prices.
E commerce Business
Ecommerce stands for Electronic Commerce or internet Commerce. E commerce deals with the sales and purchase of goods and online. It also comprises online money transactions and data exchange.
Although, the customers browse through the catalog of items or services available with the online seller, select the item or services per their requirement, provide delivery address details, and make payment through the different payment options offered.
Currently, eCommerce is a booming industry bringing the world closer due to its broad reach. Ecommerce has been classified into four categories based on the application’s end-users.
If you have any connection to the retail or eCommerce businesses, chances are you have heard the terms drop shipping and marketplace being thrown around constantly.
In industry publications, social media, and at industry tradeshows, it seems like folks are always talking about wanting to get into Drop shipping or sell on a marketplace or dropship with Amazon, way fair, etc., but what does all that mean?
The Basics of Drop Shipping
It is a shipping/fulfillment method wherein a consumer order with a multivendor online retailer. Still, the product’s actual manufacture or brand is to ship the order directly to the consumer. Indeed, the Drop shipping retailer does not keep any physical products in its store.
It simply transmits order information from its website to the brand, which ships it onto the customer. The following graphic offers a clear depiction of the process.
Drop shipping is a very streamlined process with many advantages, so it’s clear why it’s become all the rage in the eCommerce community. Retailers who dropship don’t have to worry about stocking products and managing warehouses.
Hence, They’re able to offer a broader array of SKUs from the existing supplier and or try out new vendors and product categories without much upfront cost. Brands, meanwhile, can gain access to far more retailers, reaching new audiences and generating new revenue.
Also, they too can experiment with different SKU mixes and product categories with their existing retailers, whereas an option that would be far riskier and more difficult under a traditional wholesale relationship.
Like anything in retail, drop shipping is not without its faults. Hence, If it’s not executed with the right technology and due diligence, foolhardy merchants and manufactures alike can lose control of all the moving parts related to shipping processes, inventory data, and product information.
In addition, Companies that have employed the strategy successfully will be the first to attest. However, that Drop shipping can be a huge boon for business.
Advantages of Ecommerce with Drop Shipping
| Ecommerce | Drop shipping |
| In Ecommerce for legal issues, there is less potential. | It is an easy process to start a business. |
| It can control and complete the branding of products. | The drop shipping business, no physical location is required. |
| There is a possibility to build a brand | The packaging should be good, no need to worry about packaging. |
| You can sell products of your own choice. | Very minimal cost is required to start the business. |
| There is much control over fulfillments. | No need to worry about manufacturing or trading. |
Disadvantages of Ecommerce with Drop Shipping
| Ecommerce | Drop shipping |
| Firstly, you have to invest in starting a business. | It seems very competitive. |
| In inventory, you have to invest. | It is likely to be legal issues. |
| This Business require physical location (warehouses) | We have less control on the delivery process. |
| The investment in the initial level should be in great amount is required. | In drop shipping, it is more challenging to build a brand. |
| The rent for eCommerce fulfillment may be costly. | The products in this business are not able to be branded. |
Is Ecommerce Stop or Drop Shipping makes good image?
Both eCommerce and drop shipping are excellent ways to make a handsome amount. The benefit of doing this business is mutually are online. If you choose the right product, possible marketing, and an acceptable branding strategy, you will succeed.