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Is Dropshipping Still A Business Model Worth Exploring?

Is Dropshipping Still A Business Model Worth Exploring?

Jamie Costello 741 26-Sep-2019

Dropshipping has been the go-to strategy for online entrepreneurs worldwide since 2014. The usage of drop shipping digital marketing strategies has risen massively in the younger generation of entrepreneurs, who, by combining savvy branding strategies to cheap, generally Chinese made products, have built their fortune. With such a noisy marketplace, the question many are asking themselves is: "Can I still do it? Is Dropshipping still valuable?" Let's try and dissect the matter in more detail. 

Aliexpress And The (Death Of) The Industry 

If you know how dropshipping works, then you'll know that Aliexpress and Oberlo have been the two titans in this particular eCommerce business model. Basically, what every single drop shipper is doing in today's age is sorting his/her products via Aliexpress, to then list them on their site after a small branding campaign. The sales funnel normally happens via social media paid ads, which are indeed the biggest focus in these businesses. Currently, Aliexpress is going through a massive rebuilding campaign, therefore it's possible that the platform will soon be left apart.

The Technologies Used 

Dropshipping uses a variety of applications and architectures. The two main ones are definitely Shopify and Oberlo, which are working closely together to automate both the listing process and, most importantly, the entire stock management (keep in mind that drop shipping was born to avoid stock management). Oberlo and Shopify are still the two most used applications in modern dropshipping, but they are very likely to fade away given the recent legal updates to this matter.

The Legal Side Of Things 

Legally speaking, dropshipping is still perfectly ok to be associated with any business entity. Although, when this is related to companies which are explicitly rebranding their products' descriptions, this could be extremely dangerous. Some corporate solicitors in Manchester have stated the dangers of running a variety of dropshipping campaigns when these are not properly regulated (products' availability, location etc). Transparency, in this business, in particular, is mandatory. 


Updated 16-Nov-2019
Jamie Costello

Business

I'm an experienced business writer who uses experience from education and previous work experiences to collate my articles. There are various topics that I've written about including commercial property, management tips and work disputes.


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