businesses

Why Dropshipping is Still a Relevant Business Model In 2018

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With the E-Commerce rise, many were the businesses that moved from a pure physical selling approach to an E-Commerce one. Young entrepreneurs (or webtrepreneurs) decided to bring this to next level, by implementing the dropshipping method within their Shopify store, eventually running and managing multiple stores at once. Let’s break down what is currently one of the most prolific online businesses.

What’s The Actual Process

Dropshipping is a business idea that revolves around selling products without physically owning them. First approaches to this business method started all the way back when IKEA started (yes, IKEA was a dropshipping business), but now, as said above, this whole concept evolved by combining Shopify’s easy-to-build interface and Oberlo: a third party application that lets you list products from another store/supplier and automatically fills out the order and manages it for you.

Of course, this mainly applies to stores that are focused on the fashion market, drop shipping their products from stores and Chinese suppliers like Aliexpress, DHGate and Taobao, rebranding them under their own name. Of course, relying on such suppliers could sometimes be a problem and that’s why it’s important to have quality professional indemnity insurance.

How Marketing Is Impacting This

Marketing is the foundation of these businesses since they rely on conversion rates coming from Facebook, Instagram and general PPC advertising. To be more precise, many are the successful ones that are using Instagram Influencers as their vector machine for a successful marketing campaign: they are simply relying on these pages’ organic reaching in order to guarantee more sales on their store(s). The advent of dropshipping stores, of course, was a gold mine for Instagram influencers, that were able to convert their traffic into high revenues.

What’s The Future Of Dropshipping

Legally, we will see more regulation to these businesses, whether if it’s from contractors (and contractors insurance companies accordingly) or proper business owners. Of course, GDPR will limit their power of action in terms of newsletters, discounts and actual listings, but still, dropshipping is here to stay. Starting a dropshipping store, right now, is still pretty easy, so in case you want to start a career in this area, the time is now.