Dropshipping refers to a retail method where the seller does not own or stock their own products, but instead purchases the items from a third party to fulfill time-to-time orders. Products are advertised online without there being any physical inventory, and when they are sold, the seller purchases them from the third party and ships them directly to the end customer. Aliexpress is an online retail service based in China that ships small products to online buyers across the globe. It is a reputable website that has specific guidelines that its sellers need to operate under. Using dropshipping with Aliexpress is one of the most common online retail practices in today’s time as it is a beneficial form of entrepreneurship without many risks involved. Dropshipping does not require products to be purchased before selling which means there is no need for initial investment before starting a retail business. The risk of business failure is minimized because the retailer only purchases what he has already sold. That is, he makes the revenue before incurring any costs making profits easier to calculate and generate.
Regardless of its benefits, dropshipping is a practice that might possibly be on the verge of dying out, as business retailers become more and more aware of the rapid pace of technology being outdated. With vigorous development, new digital business models are also at a high risk of becoming obsolete. Moreover, there are other factors that are contributing to the decline of dropshipping practices such as unprofessionalism of sellers, long shipping durations, high cost of goods and low product quality. Through dropshipping, retailers often neglect the customer in favor of higher profits and there is no attention paid to the importance of customer loyalty as the retailer has nothing to lose once the customers have paid the price and they have earned their revenue. Using Shopify for their services, most online retailers don’t focus on any standards for their stores as they are selling through social media advertisements. Consequently, poor customer experiences lead to a lack of trust from the public in the entire business model as a whole and contribute to the negative feelings associated with it.
On the other hand, however, there are many dropshipping businesses that are thriving, and that is because they put their customers first. Most sellers that work with Aliexpress pay special attention to the needs of the customers; adding special discounts, refund facilities, and bonus goodies to encourage repeat sales and customer loyalty. In any sort of business model, you may be able to make very high sales initially and break-even in a short period of time but if you’re looking for long-term success and retention of revenue levels, customer satisfaction should be your first priority.
In conclusion, dropshipping is a highly beneficial business model if it is used wisely. Keeping up with customer expectations, technological development and setting reasonable goals for the future of the business, a sensible online entrepreneur can use dropshipping with countless online stores and websites to generate profitable sales.