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Sep 20, 2018
Prayan

Will Drop shipping replace the Future of E-commerce?

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According to the market research, it is estimated that around $1000 billion sales will be done through online retail in the year of 2019. Among this half of the sales will be the result of dropshipping.

Dropshipping, a business model in supply chain management in which the retailer need not keep the materials in stock instead the order will be given directly to the retailer or a wholesaler who then ships the order directly to the destination.

The main reasons why dropshipping is going to replace E-commerce for start-ups and entrepreneurs;

Product Sourcing: In the case of conventional e-commerce stores they source products directly from wholesalers from different countries. The items will be ordered in bulk which are then delivered to the local warehouse prior to being promoted and sold. This process consumes lot of time, money and resources costly intermediaries, such as banks, cargo shipments and export-import agents.

The dropshipping model allows retailers to sell products eliminating the headache about sourcing for large quantities of each item. The retailer can choose to contact the wholesalers by e-mail to notify them that their products are now being carried at the store. The rest of the process, such as importing product photos, changing prices and order tracking, can be managed easily from the dashboard

Storage: The dropshipping model helps startups and entrepreneurs thinking about the storage space. Since the product are sent directly from the manufacturer, solving the rent rate of warehouse.

Order Fulfilment: Most start-ups entrepreneurs don’t spend much time and cost in packing and shipping orders. This dropshipping model helps them to make the process in a much better and faster way.

Concluding that, the dropshipping model helps start-ups with an opportunity to strongly compete with medium and large-sized online retailers, thus giving eCommerce platform equal value.  This being said, expect to see more e-commerce stores adopting this model in the future.

 

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