For novice sellers who have just entered the e-commerce field, choosing the right starting model is of vital importance. When funds are limited and operational experience is lacking, drop shipping is undoubtedly the best solution to reduce risks.
Beginners have a high probability of trial and error in the early stage. If they blindly stockpile goods, once the link building fails, the accumulated goods will only become a burden at the bottom of the box. The drop shipping model enables sellers to avoid stocking up in advance. After customers place orders, suppliers directly ship the goods, which can minimize the cost of trial and error, increase the turnover rate of funds, and maximize the value of limited funds.
However, the shortcomings of dropshipping cannot be ignored: the after-sales process is difficult to control, and the delivery time and packaging quality of the supplier directly affect the customer experience. The relatively high cost of purchasing goods weakens the price competitiveness and subsequently affects the repurchase rate.
Therefore, for sellers who plan to operate for the long term, as they accumulate experience and accumulate funds, gradually shifting to a stockpiling model would be more secure – they can not only reduce costs through bulk purchasing but also independently control quality control and the pace of delivery.
However, no matter which model is chosen, the essence lies in the difference of the shipping method. There is no essential difference in the operational logic and sales strategy.
There is no need to be bound by the labels of “no inventory” or “with inventory”. Dropshipping can help you find high-quality products, while self-stocking may also fail due to quality control loopholes. The key is still to focus on improving operational capabilities and concentrating on the blue ocean market.
It is worth noting that whether it is dropshipping or stockpiling, freight forwarders can be a “godsend” for new sellers.
For dropshipping sellers, freight forwarders can integrate upstream supplier resources, uniformly connect the logistics links, and avoid shipping chaos caused by the dispersion of suppliers. For instance, when goods from multiple suppliers need to be sent to the same customer, freight forwarders can offer consolidated package services, reducing the number of times customers receive goods and also lowering logistics costs through bulk bargaining.
For sellers who hoard goods, the value of freight forwarders is even more prominent:
Firstly, freight forwarders are familiar with the global warehouse layout and can recommend overseas warehouses with high cost performance, helping sellers plan a reasonable inventory volume to avoid inventory overstock.
Secondly, freight forwarders have mature customs clearance channels, which can simplify the import process and reduce the risk of goods being detained.
Thirdly, freight forwarders can offer value-added services such as labeling, changing labels, and quality inspection, which are particularly suitable for stockpiling sellers on platforms like Amazon, saving them the labor costs of building their own warehouses.
Among the numerous freight forwarders, Smartdropping is particularly suitable for novice sellers. When doing drop shipping, it can connect with suppliers on platforms such as 1688 and Taobao, helping you realize the agency procurement business, achieve automatic order synchronization and unified shipping, and also provide dedicated after-sales follow-up to make up for the after-sales shortcomings of drop shipping. After switching to the inventory mode, its overseas warehouse service can support goods storage and drop shipping, and the logistics cost is reduced by more than 30% compared with self-shipping.
No matter which stage it is, Smartdropping can help novice sellers focus on the core of their operations and avoid detours through professional logistics solutions.
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