E-commerce and dropshipping in retail
It is estimated that more than 33% sales in e-commerce are done from dropshipping. Dropshipping has become a major driver of e-commerce. E-commerce and drop shipping are now linked together. Dropshipping is an e-commerce method of selling products without stocking it. This is good for entrepreneurs trying to create an e-commerce business with a low budget. This is one of the most well-known e-commerce retail methods.
The similarity between e-commerce and dropshipping
E-commerce and dropshipping have a lot of similarities. First, both conventional e-commerce and dropshipping need a lot of advertising. Whether you have an e-commerce site where you need to stock products or a dropshipping website where you ship the products directly to the customer you will need some form of online marketing. Online marketing tends to be costly on popular marketing companies such as Google and Facebook. However such type of marketing has been proven to be effective in both e-commerce and dropshipping.
Big companies dropshipping
Large e-commerce companies also conduct dropshipping activities. The reason why large retailers drop ship some of their products is to offer a large variety of products. Even e-commerce retailers such as Walmart conduct dropshipping activities. This has caused e-commerce and dropshipping to come closer than ever. E-commerce companies trying to test a new product can use dropshipping before stocking the products in their warehouses.
Dropshipping and e-commerce platforms
Platforms such as Shopify have become popular for dropshipping. Shopify has even introduced a Shopify app called Oberlin. Oberlo makes it easy for dropshippers to add products to their Shopify store from Aliexpress. Aliexpress is another e-commerce giant tailored for dropshippers. E-commerce marketplaces such as eBay are also being used for dropshipping. Vendors tend to dropship products from Walmart to customers visiting their websites. E-commerce and dropshipping platforms are similar. This is due to the similar business models they use.