← e-Plus Blog Digital Commerce

What is dropshipping: does it suit your e-commerce?

By Tiago Moraes 3 minutes reading
What is dropshipping: does it suit your e-commerce?
Dropshipping: Your online store sells, but your supplier delivers. Image: @katemagostar
Dropshipping: Your online store sells, but your supplier delivers. Image: @katemagostar

Do you know what dropshipping is? I'll tell you what it is already what it's about. But first, for you to understand better, I need to tell you a brief story about Amazon.

For most e-commerce companies that want to achieve success, Amazon is one of the biggest references. After all, the company has several fixed facilities in more than 18 countries.

However, what few know is that Amazon has a totally innovative and different business style. Basically, not all of your products sold on your platform come out of your own stock.

Imagine, for example, having an e-commerce business selling products and services, such as structured cabling , among others, and not having to deal with inventory and transportation costs for materials and products. Sounds too good to be true, doesn't it?

Amazon and other renowned companies in the e-commerce segment use this strategy to reduce costs and have more efficient processes. This technique is called dropshipping, and it is coming in full swing in Brazil.

Interested in dropshipping? So in this post we will explain all the details about this subject. Keep following us to find out more! Come on?

Video: Learn more about the benefits of dropshipping

AFTER ALL, WHAT IS DROPSHIPPING?

In general, dropshipping is an e-commerce model where the virtual store does not need to have an inventory to operate its activities.

This is because all logistics and product delivery processes are under the responsibility of a partner supplier or distributor.

The process works as follows: after a customer buys a product, such as a temperature and humidity sensor , for example, the online store forwards the order to its partner supplier, who in turn ships the product to the customer on behalf of the e-commerce business.

In this way, the virtual store does not need to have access to the product, as well as the costs of all logistics and stock.

In this situation, the focus of your e-commerce will be to promote the products and services marketed by third parties on your behalf.

Therefore, dropshipping makes it possible to reduce costs and focus on marketing and advertising strategies to attract more customers.

Video: a dropshipping e-commerce (Sebrae case)

HOW IT WORKS IN PRACTICE

Below, to better understand how dropshipping works, check out a step-by-step explanation of how this process is carried out in practice:

  1. A customer accesses your e-commerce and makes a specific purchase of products and services, as a air filter, for example;
  2. After that, the website receives the order and then forwards it to its dropshipping partner, which can be a supplier or distributor;
  3. This partner is responsible for separating the product, packaging and delivering it directly to the consumer on behalf of its virtual store;
  4. If this customer wants to return, find out more information or make complaints about the product, he can contact the e-commerce.

Now that you know what dropshipping is all about and know its processes, what do you think about adopting this innovative idea and succeeding on your journey? Did you like our post? Tell us!

This article was written by Rafaela Ricardo, Content Creator at Soluções Industriais.

Do you want to apply this?
In your operation?

Schedule a Strategic Diagnosis with ae-Plus and discover how to transform this analysis into real results for your business.

Schedule a Strategic Diagnosis
Follow the blog

More readings like this, delivered straight to your email.

Signs of Digital Commerce, Marketing and Technology — no spam, only when it makes sense.

Follow the blog

Receive upcoming readings.

Digital Commerce, Marketing, and Technology delivered straight to your email inbox — no fuss.

No spam. Cancel anytime.