How to scale Dropshipping business in 2021?
If you’re coming from a background of a business that has little understanding of the Internet, you should think of starting a business that is similar to the one you have. Because for this kind of business to scale, you should scale the number of customers that come to your website. You need to create a business that has a massive database of customers. Because by 2021, the number of dropshipping sites that have jumped from one startup to another can exceed around 7,500.
If you still do not understand the magnitude of the decline in the number of dropshippers then you should understand the following points:
On top of dropping shipping, many online retailers are using dropshipping services like e-commerce marketing for e-commerce, e-commerce finance, and e-commerce software to offer best services to their customers.
By 2021, the number of online retailers that are using dropshipping services has increased from 7,500 to 77,350, a 753% increase.
By 2021, there will be as many dropshipping sites in America as there are Starbucks in America. That means there is one dropshipping website for every 100 Starbucks.
How does it happen?
In 2016 alone, the number of dropshipping sites that have jumped from one startup to another has increased by around 14,300%. It is more than 14,000 percent increase from a year prior.
Businesses do not realize it is not normal to get a similar business model from one startup to another. If your business is similar to the dropshipping model then it will be difficult for your business to reach the scale you want. And it can only get there if you have the same business models.
How Does Dropshipping Work?
When you sell products online, you typically start with the following steps:
Find a vendor. Find a wholesale distributor. Market your products. Shipment your products.
But that is not exactly dropshipping. Dropshipping is more efficient than this. It has several upsides.
Most people who are selling dropshipped products have at least one step for getting a wholesale distributor. They often have a drop shipping platform to sell their products on. For example, Letgo is a top-selling mobile app for selling iPhones and buying and selling used cars. It lets buyers and sellers meet face to face, and gives them the opportunity to swap products. It has sold over 250 million phones in one year.
This is more or less how most drop shipping websites work. There is a platform that helps you market your product and find a seller for your product. Once you have found a drop shipping website, you can then send your product to the drop shipper.
The seller then sends you a quantity and a shipping address that you can use. Sometimes you can buy the products through the website or through a retailer like Amazon.
Now it is your job to send the products to the drop shipper. All you have to do is to provide the drop shipper with the shipping quantity that you want. The drop shipper will then ship the products to your shipping address.
Many retailers are getting overwhelmed by the number of drop shippers. That’s because you can create an online store from one website and it will attract thousands of drop shippers. It is unlikely that you will attract only one drop shipper for your product.
But don’t think of this as a problem. This is a blessing in disguise.
What Does Dropshipping Mean For The Future Of Business?
It means your business is scaling. It means your business is getting larger. That is the basis for scaling your business. It means your business can have several thousands of customers by 2021.
Salesforce is a top software company for CRM. But it has increased its business from just 70,000 customers in 2011 to 19,700,000 in 2017. It means Salesforce is reaching a scale of around 700,000 customers.
If Salesforce can reach a scale of 700,000 customers, then why can’t you? Why can’t your business have similar customer numbers by 2021?
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