Because we want to build a business that will grow over
the years and give you a future
The three Dropship supplier categories
We have a few different options to fulfill an order that you receive in your store . One of them is Amazon.
You could go to Amazon, buy the product and have it shipped to your customer.
You could also have Oberlo linked to your Shopify store that would ship to your customer most likely a product from China.
The last option is a domestic or a local supplier, which means that they are based in the country you're doing business in. In our case our suppliers are in the United States.
Using Amazon as your Dropship suppliers
First, the buyer will go to your website, place the order, and you get the money in your bank account.
Then you’ll go to Amazon and buy that item for your customer at a cheaper price. This model is called arbitrage.
How Amazon Drop Shipping works:
- Buyer orders on your webshop.com
- You find the product for cheaper on Amazon
- You place an order on Amazon
- Amazon ships to your customer
- You pocket the difference
This model can also be used with eBay and Walmart, instead of Amazon.
This model isn't sustainable because you don't have any relationships with any suppliers, so you can't be sure that products will stay in stock, or hold at a certain price, and you can't communicate with a responsable person.
Arbitrage also has a lot more manual work for small profits. When you order the products from Amazon, you have to private message the sellers and ask them to not include any slips, invoices, and packaging from Amazon.
Otherwise, your customer will receive something from Amazon, becoming confused and angry.
There's also no barrier to entry. If you found something very profitable to sell, you would have a ton of competition because literally anyone can do this at a moment’s notice.
Issues with Drop Shipping from Amazon:
- Not sustainable not consistent in the long run.
- Too much manual work for small profits (need to private message all Amazon sellers to tell them not to include packing slips and Amazon packaging)
- No barrier to entry, so you face a lot of competition
- Customers will occasionally receive Amazon packaging on accident (leading to frustrated and angry customers)
While this technically still is drop shipping, it has too many issues for it to be a viable long-term solution and we don't recommend it.
NB.EBay has actually banned this practice from its own platform, ie buying and shipping from Amazon and other market places to eBay customers. EBay stores today need to have physical suppliers.
Oberlo Dropship suppliers
You could build a Shopify store and import the products you want to sell from Oberlo, linking those products to your store.
The buyers will find the products on your site and place orders, then you process the order on Oberlo.
Oberlo then sends the product to your customer. But Oberlo isn't a supplier, they're a middleman between the manufacturers and your store.
They have a ton of suppliers, causing a lack of consistency in quality. If you deliver a bunch of defective items the customer will send them back to you, not Oberlo. Then you have to return them directly to the manufacturer.
We call this Dropshipping from China because most of the suppliers are based in China when using Oberlo.
How Oberlo Drop Shipping works:
- You import products to your Shopify store
- Buyer orders from your store.com
- You process the order through Oberlo
- The supplier ships the item to your customer
One of the biggest problems is that you're always chasing trends to catch a hot product for a few weeks. Think of products like fidget spinners. After a short time, your store will fizzle out.
Most the products from Oberlo are both inexpensive and of sub-par quality. Overall, these products lack a lot of quality control. Not all of it's bad but most of the products suffer from inconsistency and lack of quality control.
There’s also no pricing control on Oberlo. They don't use minimum advertised price (MAP) which results in pricing wars and little to no profit.
Another issue with the products found on Oberlo is that they’re usually generic with no branding. This may seem like a perk, but at BeGloabl, we believe that being resellers for brands and quality is the key to long-term profits and success.
Because these items are coming from overseas (usually China), there are long lead times. So even with the fastest shipments, you're looking at 10-days but it's usually more like 20 days for your customer to receive their items.
Your customers don't want to wait that long for products. This
leads to customers having a bad experience, leaving negative
feedback, and filing chargebacks.fifilingfili
There's also no barrier to entry, so it's highly competitive and there will always be a lot of people selling the same products and flooding the internet and market with cheap goods.
Product Ideas completely free!
Issues with Drop Shipping from Oberlo:
- Always trying to catch the latest trend
- Inexpensive & offer sub-par bad quality products
- No price controls (race to the best price)
- No branding whatsoever
- Long lead times
- No barrier to entry
- No quality control assurance from the suppliers
With all these issues it's not really a good idea this type of model.
US Domestic Dropship Suppliers
When I say domestic dropship suppliers, I mean using dropship suppliers from wherever you're selling. So if you're in Europe and you're selling in that market, use French, German, British suppliers. With BeGlobal we'll be using domestic American suppliers.
This lowers shipping time down to 3-5 days, resulting in happier customers and more positive reviews for your drop shipping business.
It all starts with choosing a niche market and building a store based on that product category. Avoid creating ‘shopping mall’ stores with a lot of different niches that aren't related.
Once you find your niche, you look for people that already sell what you want to sell. These future competitors will have dropship suppliers and you'll get approved to sell their brands.
This is somewhat of a barrier to entry because you have to talk with these brands and get approved to sell with them before you can start selling products.This is a positive thing because it reduces your competition by adding a step.
Once set up, the buyer will come to your site and purchase. Then your Dropship supplier will process the order.
The supplier ships the product directly to your customer and you keep the difference between the item cost and your retail price.
Besides much faster shipping times, one of the biggest benefits of BeGlobal is that if there are ever defective products, it can be directly returned to the supplier and reduce customer rage.
How Domestic Drop Shipping works:
- You choose a niche & find your "future competitors"
- You get approved to sell for legitimate brands
- Buyer orders on store
- Your dropship suppliers process your orders
- The dropship suppliers ship the item direct to your customer
- You receive a tracking Number for your buyer.
- You keep the difference
Like the other dropship suppliers, there are a few issues with this drop shipping model.
Before you turn on your store, you spend a lot of time doing niche selection and market research upfront.
You'll also have to build your website before you have suppliers so that you can show them where you'll be selling their products.
There’s a lot of effort put into building relationships with suppliers and you won't likely get approved immediately.
This model is all about building long-term businesses that need time upfront to develop.
Issues With Drop Shipping from domestic Dropship suppliers:
- You need to do market research
- You need to build a website if you use Shopify, alternatively you can start with an eBay store.
- You need to earn the trust of top-tier suppliers.
- Put simply, it takes real work to get started
Since this builds a real brand that has long-term success, we recommend this model and this is where BeGlobal comes in by providing you with 1.2 millon products from US suppliers and takes out the stress of finding or building up trust with local suppliers.