19 January 2021
Hello,
In this article, we would like to give you information about dropshipping. What is dropshipping, also called stockless e-commerce? How to do stockless e-commerce? What are its advantages and disadvantages? We will try to find answers to your questions.
What is Dropshipping?
Dropshipping is a business model where you can sell products without having physical products. In other words, when the product supplier purchases a product, it will send the product directly to the customer, and you will receive a profit share for mediating the sale of the product (that is, making the product easier to find). You may have heard of sellers who sell products in this system on amazon etc.
How Does a Dropshipping Seller Make a Profit?
Of course, you will increase your profit share by adding a certain profit share to the products purchased by the customer. The dropshipping mechanism currently works with this system all over the world. The end-user (ie the customer) buys the product from you. The person supplying the product also delivers the product to the customer. It looks like a very profitable business from the outside. Dropshipping (stockless e-commerce) system has advantages as well as undoubtedly negative sides. You can get information immediately by doing a detailed research.
Dropshipping System Advantages
*) No Stock Cost.
The biggest advantage is that it doesn't charge you a stockpile cost, it helps you to do stockless e-commerce and you can start easily. For this process, it is enough to set up a suitable e-commerce site or a system that will allow you to transfer products to virtual stores and transfer XML.
*) You can work with more than one supplier.
As a dropshipping operator, you can sell products by sourcing XML from multiple suppliers. This means you can be creative with the products you want to present to your customers. A pc with internet access will do a lot of work to manage sales.
*) You Don't Deal With Extra Expenses.
You do not have to struggle for extra expenses, as there is no staff and shop rental costs you have to cover. Your fixed cost will be much less than you think.
Dropshipping System Disadvantages
While this business model sounds promising, there are some things you should be prepared for before entering the dropshipping business.
*) You Will Have Too Many Competitors Doing This Job.
Since the number of people dealing with dropshipping is more than you think, you will be exposed to high competition. You may need to work hard to stand out from your competitors.
*) You May Need To Work With Low Profit Due To Competition.
The high number of people doing business in the market can cause you to sell with low profit margins. (Therefore, you should determine the products you want to trade with a strict research.)
*) It Can Be Difficult To Find The Right Partners.
You may be in a difficult situation if you do not choose a professional supplier. If you cannot deliver the products on time, your brand will be damaged.
If there is no professional software running in the background, you may experience control problems in transactions such as xml, stock, price updating. If you cannot manage the operation properly, you may need to find solutions to dissatisfied customers.
Getting the support you need about all processes smoothly will directly affect your success chart in the market.
You can get detailed information from our technical team by calling our phone number +90 444 40 80. If you wish, you can quickly fill out this form and make your decision by reviewing the 15-day demo that will be created for you. We will be glad to assist you in all matters. Hope to see you on lucrative days.