Dropshipping vs eCommerce

Do you need clarification on choosing eCommerce businesses and dropshipping businesses? 

You need to learn how to manage customer relations, and you sell products wherever you want. Having dropshipping experience, we promise to provide help TO SMALL BUSINESS OWNERS. You save your initial investment and get the most out of it.

Read this article to get enough information on both models.

What is dropshipping?

Dropshipping counts as an eCommerce sub-method to sell products online. The difference comes when you don’t buy and add the product to your inventory. Instead, the products get delivered straight from supplier to customer.

Some online businesses allow dropshipping, so you need to find them. You make an online contract with the supplier and start working. The supplier provides you with images to post on your website. Once you get an order, the supplier delivers it to the customer.

Pros:

1. No maintenance

What I like the most about dropshipping is that I don’t have to store products myself. Besides, I do not need to maintain any inventory warehouse.

2. Less Staff 

Most of the work gets online with drop shipping. So there will be less need for any staff. Yet, you might need a team when your work expands too much.

3. More Outreach

You sell worldwide by creating connections with suppliers globally. It reduces the need to pay high shipping charges. So you also save money for yourself and the customer.

Cons:

1. Lesser-Profit

In dropshipping, you have fewer profit margins. The buying price is already high because it’s not a wholesale price.

2. Quality Control Not Possible

You have no control over quality. Because you can’t check products before shipping them to customers. It increases return putting you at a loss.

I’ve had a terrible experience with dropshipping. My customers receive a batch of inferior products, which causes my reviews to drop.

What is eCommerce?

Any online business where goods get sold and purchased is e-commerce. An e-commerce store owner keeps the products in inventory. More significant investments get required because you buy the stock in bulk.

More business owners trust e-commerce websites because they know it’s more profitable. You buy at portable prices and sell with almost double the profit. A customer places an order by choosing a product from the eCommerce website. The staff selects and delivers it to the address.

Pros:

1. More Profit Margin 

As the stock for your website gets purchased in bulk, the buying price is lower. It allows for earning more profit from each sale. Depending on the niche and your product, you make a lot of profit.

2. More Customers

Everyone trusts eCommerce websites, giving you a chance to have more customers. Almost 90% of purchases get done through online stores.

I suggest using famous eCommerce platforms to expose yourself to more customers. Examples are Walmart, Alibaba, and Amazon. 

3. No Physical Store 

You have a physical store if you like, yet it is optional. Having an online store is enough for your sales.

Cons:

1. More Capital Required

E-commerce online stores need more capital to stock the products. This makes it difficult for many people to start it.

I’ve tried eCommerce business, and the high start-up costs are a headache. I have to spend another cost to stock products. 

2. High Maintenance

Routine maintenance and packing of the products get required. Thus you need to hire the staff and pay them for the tasks.

What’s the difference between e-commerce and dropshipping?

With the similarity of selling products online, there are many differences too. Let’s have a look at the differences in the table mentioned.

	Dropshipping	eCommerce
Capital	Less capital gets required because the drop shipper needs to purchase products. The order gets fulfilled by the third-party website.	Huge capital gets required to buy the products. The owner needs to keep the products with him until customers order.
Maintainenece	You only need to do maintenance of the website. There is no need to maintain the products and inventory physically.	Regular maintenance of the products and inventory gets required. You need to hire staff to handle the products.
Profit	Low-profit margin because buying price is high. Yet more sales increase profit.	High-profit margins of up to 100% because the buying price is low. When products get purchased in bulk, you get them at lower prices.
Exposure	Chances of exposure get more because everything gets done digitally.	Selling products at an international forum takes time and effort. High custom charges come in the way.
Shipping Charges	Shipping charges get paid by the customer. You save your pocket from paying any shipment charges.	High shipping charges may get paid. Especially in the case of international sourcing.

Dropshipping vs. E-commerce: which is best for you?

Dropshipping and e-commerce both have different pros and cons. Depending on your situation and budget, you choose either of them. Before choosing any one of them, you need to check their impacts.

• Investment

If you have more investment, go for an eCommerce store as it brings more benefits. 

Dropshipping is an excellent option for those who want cash flow but don’t have investments. Because from nothing, you’ll make something. 

• Physical Space

Those having enough physical space or afford physical space choose online businesses. Not having physical space is also okay because there’s another option. Start dropshipping and earn a living. 

• Profit

Dropshipping business model is best to make immediate money on less investment. Yet you’ll not make a lot of profit. Waiting for some time in e-commerce is better if you don’t need immediate gain. As it will be a higher profit whenever your website starts selling.

FAQs about Dropshipping vs eCommerce

What’s Next?

A business in the coming era is the only way to survive. eCommerce stores and drop shippers make thousands of dollars per month.

Are you interested in trying your luck becoming an online retailer?

The LeelineSourcing fulfillment center helps with each step of making money online. We provide suppliers for an online store, and you focus on marketing strategies. 

Contact us as soon as possible to get your quote.