If you’re new to the dropshipping business, you must have wondered what marketplace would suit your business. It’s essential to get off to the right start. Unfortunately, the features, fees, and options can be startlingly different from one site to another. The choice can become a bit muddy for sellers, and you might end up going with the site, which isn’t for you.
We would recommend Shopify as the best one out of the lost. However, to offer equal opportunity to other marketplaces, we will discuss some of the best ones alongside Shopify.
While we have been calling it a marketplace, it’s more of advanced software for dropshippers. The site doesn’t let you get lost in a sea of products on a website. Instead, it will make you create a website of your own for a friendly fee per month.
On the one hand, it might be a long term commitment. However, if you believe in your products and your customer service, one can’t compete with the way Shopify has expanded the dropshipping business.
You can connect your website to sites such as AliExpress. From there, you can import product contents and images to host on your website. When a customer has made an order, you have to order the product from a supplier from AliExpress and have them ship it to your customer directly.
On the one hand, you get to create your brand for a relatively inexpressive price. You don’t have to purchase a product without being sure it is going to sell out, nor do you have to provide a warehouse for the product. You can also set the price for the products according to your convenience.
Of course, the site has its problems. You must have some amount of technical knowledge to start a website on Shopify. Once you do start the website, some effort must go towards maintaining. Otherwise, it is the best place to resell stuff.
Shopify also calculates tax for your, which is a definite bonus point for entrepreneurs.
If you’re thinking about selling stuff, especially items you’ve purchased, your first thought is probably eBay. Well, you can’t be blamed. They have been one of the longest-running marketplaces in the online business world.
They have a range of features one can have their pick from. The inventory is extensive, no doubt. However, eBay also comes with a couple of problems one can’t help but focus on.
If you add the fees for eBay along with Paypal, it amounts to 13%. It’s a bit too heavy. To put it into perspective, for every $10 you make, you may have to pay $1.
Another clear issue is the eBay store in itself. The store itself is quite vast, and a dream of entrepreneurs, but the charges for them are on a premium basis.
If you want to customize your store, along with the high fees for selling and registering, you will have to pay additional monthly fees. The profit you will get from dropshipping can turn out to be very low if we take all this into account. If you want to sell at a reasonable price, a lot will go out of your pocket.
If you choose to raise the price of the products, you will have to take the risk of not selling any of the products due to the scary price.
On the other hand, you need to have a store on eBay if you want the facility of a large inventory. Our advice would be to only venture on eBay if you are sure about your products and can provide the fees until you become stable with our business.
Fulfilled by Amazon or FBA is Amazon’s venture into the online business for its retailers. The program allows its sellers to send the product to an Amazon fulfillment center. From there, Amazon does the job of shipping the item to the end seller. The system seems decent enough, especially if you’re a flipper.
However, the FBA business does have some drawbacks. First, you must have a standing inventory of the products. It means if you’re in the dropshipping business and you sell your trending products through factories, you’re automatically disqualified. For a flipper, they will have to send their inventory to the warehouse every time they wish to list an item.
Second, the fees for FBA is high. Parking fees, weight handling fees, fulfillment fees, and storage fees- they charge it all. You can guess the culmination of all the expenses isn’t pretty. As for the first three fees, they are charged at the time a sale occurs. The storage is a regular monthly fee. You have to sell and sell a lot if you want to have any profit after handing over all those fees.
The last and even the worst one. FBA doesn’t let you be in control of your products. When you’re shipping straight to the warehouse, you don’t get to check on your products. Otherwise, you have to pay the shipping rate twice as it first comes to you and then for the warehouse.
As the items are in a warehouse, you don’t get to check the condition of the products regularly, either. You will need to check with the warehouse to keep tabs on the inventory as well.
If you have a flipping business you want to automate, FBA is excellent. For people in dropshipping, and for new sellers, it’s ultimately too expensive. It doesn’t take into account the ordinary people and can be quite complicated.
It’s easy to see why we decided on Shopify as the best site to sell stuff once we go through this list. The charges placed by Shopify are minimum, and it let its sellers more than makeup for it by offering a wide range of facilities.
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