Blog Archives

Dropshipping has become very popular in the past few years. During the epidemic, China’s drop-shipping business has also grown at a very fast rate.

The dropshipping business is expected to be worth $557.9 billion by 2025. MarketWatch says that the effects of the pandemic will cause the number of people who shop online to rise from 15% in 2020 to 25% in 2025.

According to data from DataIntelo, the drop shipping market will reach its peak in 2020. In 2021, the market size and growth rate from one year to the next will slow down slightly. Cross-border e-commerce will be allowed again in 2022. The dropshipping industry is steadily getting better.

The way the dropshipping model works for business

A drop shipping company is also a storage company.

When a customer places an order, it is sent to the service provider’s warehouse, and the goods are then shipped from the location in the logistics provider’s network closest to the recipient.

By leveraging logistics service providers’ expertise in areas like storage, transport, personnel, distribution networks, financial resources, etc., dropshipping benefits both parties involved.

Overseas warehouse

What are the pros of dropshipping?

1. Cost of capital is low

When retailers use dropshipping, they save money on labor costs because they don’t have to pay employees to pick, pack, and deliver orders. They also don’t have to buy packaging materials.

Most of the time, drop shipping means low overhead costs and low start-up costs, so there isn’t much financial risk.

2. Low cost of time

You only have to worry about taking orders through your e-commerce platform or one you built yourself. You don’t have to worry about packaging and shipping, which saves sellers time and gives them more free time.

3. Variety of Choices

The drop shipping model makes it easy for sellers to offer more products and more options.

4. Fast and Efficient

Since the delivery address is known and the service can be done as quickly as possible, the seller can get a bigger discount on the final delivery. Cost control and being on time are the best, because they make the experience of using the product better and make people more likely to buy it again.

Are you running your e-commerce business via Amazon only? Have you set up shop on Shopify but did not set up shop elsewhere? If you are running your Ebusiness on one sales channel only, you may want to consider running it on two – and then three, four, and more sales channels! After all – why not, right?

Running your e-commerce business on different sales channels may seem an added task – and it is! But if done properly, you’ll reap multiple benefits than if you’re operating on one or two sales channels only.

That being said, here are some reasons why you should consider expanding and running your e-commerce business channels to different sales channels.

4 Reasons Why You Should Run Your Business on Different E-Commerce Sales Channels

1) You get more exposure

One of the reasons why you should consider running your business on different sales channels is that you get more exposure when you are present on different sales channels.

Simply put, each sales channels have its own market. If you only run on, say, Amazon, you are only interacting with the customers that buy on Amazon. But if you appear on other sales channels such as Shopify and eBay, you get to interact with the market under those sales channels.

2) You reduce risk in case one of your sales channels experienced temporary or long-term problems

There’s a saying in investment that goes something like this: “Do not put all of your eggs into one basket.” The logic here is that, if you put all your eggs into one basket and that basket went down, you will lose all your eggs – or in this case, you’ll lose all your investments if you invest only in one asset. The same can also be applied to sales channels in e-commerce.

When you are only running your business on one sales channel only, your business will always take a toll whenever that sales channel has problems.

Whether we like it or not, the Internet will always have its downtime and other problems. In the case of sales channels, this means problems like server crashes, payment processing problems, etc. While these problems are usually temporary and will eventually resolve themselves, your business will always take the beating should your sales channel have these problems. On the other hand, if you run on multiple sales channels, your business can still operate smoothly even if you face temporary inconveniences on one or two sales channels.

In some cases, problems with sales channels can be long-term – at times, you may even need to stop running your business on a particular sales channel. If you run on multiple sales channels and one of them went really bad for your business, you have a good buffer to rely on since you have other sales channels that run well for your business.

3) More ways for your customers to interact with your business

By setting up shop on different sales channels, aside from getting exposure from different markets, you are also giving your customers new ways to interact with your store.

For example, some customers may prefer to buy on eBay than Amazon for whatever reasons they have. If you appear on both sales channels, you are giving them more options to interact with and buy in your store. On the other hand, if you only sell on Amazon, you practically lose these potential customers that prefer eBay (and vice-versa).

4) More sales channels = more potential profits!

Finally, running on different sales channels simply means that you can more revenue for your business! By selling on different sales channels, you would get more exposure and more sales that you would otherwise probably lose if you only run on one or two sales channels. The bottom line there, of course, is more profits!

Final Thoughts

Running your e-commerce business on different sales channels will provide you with these benefits. That being said, you should still scale reasonably. Otherwise, your scale-up may actually backfire if you load your business operations with more than what your business can handle at the time.

If you are planning to scale up and sell to different e-commerce sales channels, we have good news for you: Fulfillmen already integrated with different major e-commerce sales channels such as Amazon, eBay, Shopify, WooCommerce, and Aliexpress!

If you have questions about our services, feel free to contact our dedicated customer service support