Net income of $149.4 billion! E-commerce Dropshipping direct sales model becomes popular

For cross-border e-commerce sellers, Dropshipping is a common sales method and is not uncommon . However , recently, it has quietly become popular and has become a hot topic among small and micro business owners at home and abroad .

Dropshipping is a method of e-commerce supply chain management. Sellers do not need to stock goods, but only need to give customer orders and shipping details to wholesalers, and then the supplier will send the goods directly to the customer . The seller earns the difference between the wholesale and retail prices.

According to statistics, in 2020, the net income of the global Dropshipping market was US$149.4 billion , and 27% of online retailers have switched to the Dropshipping model . Domestic cross-border e-commerce sellers can also try this sales model and start their own cross-border e-commerce journey with a small amount of start-up capital. Alibaba International Station and AliExpress both provide this service. According to some sellers, Shopify independent stations can also use the Dropshipping service provided by domestic platforms.

In layman 's terms , Dropshipping can be understood as " direct delivery" or "transshipment delivery". As a seller , you don't have to accumulate a large amount of inventory, and zero inventory is also possible . When there is an order, the seller transfers the order to the corresponding supplier or manufacturer, and the supplier or manufacturer directly delivers it to the customer . Although the logistics time is relatively longer, this method can greatly reduce operating costs .

The success of any model will not be achieved overnight , and the same is true for Dropshipping . Dropshipping is closely related to product selection, and market research is essential . If there is no demand, the product cannot be sold . Any company must fully consider market demand before investing . Although Dropshipping does not require a large amount of its own funds, if you want to use it to achieve the goal of "small cost to leverage large profits" , it also requires sellers to fully understand the market in the early stage and sell products that people want.

In the era of big data, market research is not as difficult as imagined. Google Trends can provide a lot of market data, as can websites such as Amazon or eBay . Click the search bar on eBay and a list of popular keywords will appear, so you can easily understand which products are popular.

The selection of suppliers is also a key link. Sellers must choose reliable suppliers who can guarantee both quality and quantity. After all, if there is a problem with the product, it is the seller, not the supplier, who will bear the brunt of the consumer's anger.

Industry experts predict that the dropshipping industry will be worth $557.9 billion by the end of 2025 , thanks to the rise of online shopping, so now is the perfect time to get in on the action.

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