10 reasons why you should start e-commerce and dropshipping business

Dropshipping & Ecommerce business has revolutionized marketing and they are here to stay

“Two are better than one because one will help the other”—oladewalaura

E-commerce and Dropshipping are two different business models.  But, when dropshipping is adopted by the e-commerce business, it gets converted into a powerful tool that skyrockets profits and earnings.

To understand how this happens, we need to know these two businesses.

E-commerce business: History and definition

Well, as per reports, the first online transaction took place when Stanford students sold marijuana to MIT students at their AI lab. Marijuana has to a part of creating history and it did not hold itself back when it came to e-business too.

However, it wasn’t until August 12, 1994, Dan Khon created history by selling a sting CD online to his friend in Philadelphia. This is the first official online shopping transaction recorded and marketing hasn’t been the same ever since.

Tracing the history we now know that e-commerce is any kind of business transaction which includes products and services between two businesses or business to customer or customer to customer, that takes place across the internet.

Dropshipping: History and definition

Dropshipping dates back to the pre-internet era. When JC Penny & Sears developed fulfillment houses, mail order companies like Compucard purchased the item ordered by the customer and delivered it to their address for a mark-up price. Tada! The Dropshipping business model was born.

Dropshipping has come a long way since the evolution of the internet and it has turned into a huge business model and it will stay.

Now you can clearly see how small businesses soared into giants, with excellent e-commerce business ideas, for eg; Ali-express dropshipping, which were never envisioned back when it started.

Now, let’s look at the top 10 reasons why you should start an e-commerce company.

1. E-commerce is the fastest-growing retail market: Since e-commerce deals with a direct supplier to the customer model, e-business has skyrocketed. The world has seen a steep rise in legacy brands marching towards online marketing.

2. Low investment: unlike other brick and mortar businesses where the initial investment drills a hole in your pocket, an E-commerce platform involves building your e-commerce website design and website development.
3. Reduced manpower: With technology testing man’s potential, the e-commerce players have operated with few employees, which has resulted in increased monetary benefits for the employees working for the company.

4. Earn during your vacation: Gone are the days when a vacation meant the loss of pay. Working for an e-business ensures monetary flow even on your hiking expedition.

5. Easy to launch and execute: Find your niche, plan a strategy, and whip up a good relationship with vendors. Execute your plan and action with consistency and dedication.

6. More than75%of the world’s population have purchased goods online: As per research the number of online users since 2000 has just doubled and more than 75% of the world population has purchased goods online. This trend hasn’t seen a decline and as per statistics by 2023, the total share of e-commerce retail sales would be a whopping 22%.

7. Make money by different methods: Apart from having your own product you can also go for the most common method called affiliate marketing, cost per Mille advertising, PPC ads, and banner ads.

8. Increased customer convenience- saves time and money: Today’s customer has anything but time. If you succeed in delivering your customer, quality products at their convenience you can rest assured that your sales will skyrocket.

9. Can be operated through-out the day, all through the year: There are SEO automation tools like SE Ranking, Traffic Booster, RIO SEO, YourAmigo, A1QA that help in better ranking and help you reach the top of SERP without manual operation.

10. Increased customer reach: Unlike traditional business practices, E-business helps your reach customers beyond the constricted demographics. Ensuring enhanced customer reach.

Moving on let’s look at the top 10 reasons why one should start a dropshipping business.

1. An extensive volume of commodities can be sold: You can drop ship in bulk. Be a dropshipping wholesaler and partner with big suppliers without any constraint on the price as you are not paying for the product unless it is actually sold, unlike, the traditional wholesaler.

2. Low investment/low start-up cost with automated communicative tools for zero error: the start-up would involve registering your domain, uploading pictures and videos of your product and you are good to go. Apart from that with the dropshipping automation tools available there is no room for error.

3. Place and time would not be a constraint to manage a business: Dropshipping business ideas come when your business travels with you. Earn during your leisure trip and get innovative while fishing.

4. Preference for online shopping: A mammoth increase in online shopping has been witnessed over the past two decades and with the pandemic unleashing the vastness and credibility of online shopping, it is but obvious that the average drop in shipping earnings would increase with time and consistency.

5. The steady e-commerce growth ensures stability in dropshipping business: Most of the well-established brick and mortar industries are opting for online business and this trend would take over the entire market assuring the stability of dropshipping and dropshipping income.

6. Increase in mobile phone usage for online shopping: Every other person irrespective of gender and age is hooked to smartphones and with mobile shopping e-commerce apps on the surge, shopping is done on the go.

7. Increased trust in smaller businesses: Gone are the days when people preferred huge brands, now, people trust businesses that they can relate to giving smaller e-businesses a chance to flourish. The more the demand more the number of suppliers and the better it is for the dropshipping business.

8. Global shipping with reduced delivery time: With airways taking up shipping orders. Cross border delivery of goods has become easy. So easy that, Lakers merchandise reaches the Indian subcontinent in a couple of weeks. Overseas dropshipping has picked up momentum is definitely on the rise.

9. Warehouses, not a necessity, however, inventory remains unaffected and can be scaled up: The dropshipping business model does not require any inventory in stock. Hence, space and investment in warehouses are ruled out.
10. Sustaining brand quality: The dropshipping suppliers transport and pack products with your branding, which makes the customer feel that you have packed the product and with a good relationship with suppliers, customer satisfaction is inevitable.

Conclusion:

E-commerce business and dropshipping business are here to stay and help you earn money. Choose either of the businesses or better, merge them both.  Get started and grow. All the best, for your new venture.