For years, I have dabbled in ecommerce. I have promoted ecom sites, partnered with store operators, and designed/setup ecommerce scripts. I have many drop-shipping accounts and I know where to get a good deal when I want to sell one. What I have learned along the way is that there are a couple different kinds of ecommerce websites.
- Home-based drop-shipped stores.
- Big-box retail ecommerce.
- Larger privately owned stores that buy in bulk/pallets, and use a fulfillment service like AMS Fulfillment Service.
If you are reading this looking for answers for your own store, lets assume you are the first one or the last one on that list (or trying to become one of those).
Dropshipping has been something I was always interested in. It’s very easy to setup and sell without storing inventory. You know that it takes a lot of money to buy a warehouse or storage space, and manage shipping of all of the orders that come in. Dropshipping is what a lot of Ebayers do and it works for them.
Is it good to dropship for other reasons?
Yes. One major reason is that dropshipping companies tend to provide a list of their products along with images, descriptions, and other vital data like item weight in an excel file or csv which you can then import into an ecommerce site running oscommerce, cre loaded, or one of the many others out there. When inventory changes, the csv file usually changes quickly and you can import that information with the click of a button.
Why would I do anything else then?
Well, you’re not saving money when you dropship. Sure you can get wholesale prices if you have a federal tax id number and business license, but that doesn’t mean you are getting the rock bottom price.
If you were to order in bulk, you would save thousands of dollars per month in a high volume e-commerce sales business. You order items by the pallet, but you still have to store them. That’s where fulfillment services come in. You pay a nominal fee, and you have the pallets sent to their warehouse. They receive the order from you and slap your label on the item, then ship it to the customer. All of this is done quickly so your customer benefits from the fast service and get their item while it’s fresh in their mind. The great thing about a fulfillment service is that even after their fees, you are saving lots of money by purchasing your items in bulk.
Do you have an ecommerce business? Do you dropship or buy in bulk?
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