For every dropshipper, the proper organization of the online store is a crucial aspect of the profitability of the whole business. Dropshipper business is based on a properly chosen product niche, a supplier, and a created online store. Supplied products’ quality and delivery are the chosen supplier’s responsibility. Dropshipper has options in every aspect – there are many suppliers worldwide for all niches, and the online store can be created on the dropshipping marketplace or own website.
Our goal is to check both options for online store placements in detail and find all the pros and cons.
Available options for online store
Dropshippers sell goods only on the Internet. With selling 24/7, dropshipper can achieve in a short time the same revenue as physical shops.
You can create your own e-commerce website or use popular marketplaces where dropshipping is allowed. The choice of marketplaces is wide – Amazon, eBay, Walmart, AliExpress, Etsy, Mercado Libre, Rakuten, etc. Amazon, for example, has about 200 million unique monthly visitors every month. The marketplace is a large online shopping center with a wide choice of brands and products, working 24/7 with warehouses in many countries. Some products are available only in these shops.
Own website for dropshippers is a standard website without any limitations on subjects, number of pages, price of goods, number of positive reviews, and subscription fees. There are no rules or requirements from third parties. You can agree with the supplier on any delivery terms. You may consider this option as more profitable, but a dropshipper needs to spend significant time to make this website visible among the whole Internet, not only marketplace competitors.
Pros and cons of selling on the marketplace
Marketplaces are a good start for beginners. Their tutorials and technical support will help in every complicated case of online store creation. You definitely get customers if you choose the marketplace based on your product niche. Unfortunately, marketplaces allow the sale of only verified and legalized entrepreneurs; you need to go through a detailed questionnaire and provide legal documents. The complexity of this process differs from one marketplace to another; for example, to sell on eBay, you need to provide an Individual Tax Identification Number, among other documents. In addition, you can’t sell immediately on every marketplace; you have to wait a week or more to pass all checks before you can do the first listing.
You need to hide that you are going to dropship as well. Even though dropshipping is allowed for most marketplaces, dropshipping from one marketplace to another is mainly prohibited. You always need to check detailed instructions in every case, for example, The Ultimate Dropshipping Guide for dropshipping from Aliexpress to eBay. Also, marketplaces have special rules for sellers that help them rank sellers and provide customers with bestsellers first. So, you must provide excellent customer service, have many positive reviews, and resolve all cases on time. Otherwise, your account can be suspended, or the number of listings will be limited.
In return for all marketplace difficulties, a dropshipper receives constant customer traffic and applications to simplify online store creation, listings, description creation, and order fulfillment. In addition, some marketplaces propose special discount programs, during which your goods can appear on the landing page. To create a complete picture of selling on a marketplace, please check more pros and cons in our table below.
| Pros Available integrated services for order fulfillment, SEO improvement, online store design Need to keep the average price for goodsMany software applications for integrations with other marketplaces Many software applications for dropshipping automation Available marketing campaigns and discounts to boost sales Protection from cyber-attacks and other security measures Possibility of selling worldwide A good solution for beginners Low investments are required to create an account | Cons Subscription fees and other commissions Strict requirements on delivery terms Requirements on storage capacity and number of items in an online store No possibility of getting your customer database if you want to open a separate online store Need to go through a detailed registration You need to set a competitive price Many competitors Limitations for dropshipping from other marketplaces Suspension for selling branding products without permission |
Pros and cons of selling on own website
You may decide to create your own website at the beginning or as an expansion from your online store on the marketplace. If you do not have enough skills to create it, you need to hire a web designer, use a CMS (content management system) or other design software. For your website, you need to purchase a domain and think about the name. The name should reflect your brand and product niche but also be easy to remember.
On your website, all goods will be sold under your name. As Supplier executes delivery, you can add presents, postcards to your deliveries and deliver them at any convenient terms for you, the Supplier, and the Customer. You can create a professional website with high-quality images and videos, but some marketplaces have limitations on resolution. But still, all your website pages should be downloaded quickly, content requires keywords, and should have no bugs and mistakes. To check all these, you need to perform SEO audits regularly.
The biggest problem of all websites is traffic. You must make advertising campaigns – in social networks, emails, newsletters, blog posts, forums, and communities. As you can’t take your database from the marketplaces (if you previously had a store there), you must start from scratch (you may hope on your brand awareness). You can check a table for more pros and cons of your website.
| Pros You have complete control of the website No competitors on your website No limitations on listings and prices No fees You can create additional income as an advertising platform for your partners You can set any prices and propose any discounts Still many applications for automation and integration with marketplaces You can promote your website with any possible methods You can create a community | Cons Time and money-consuming process for creating a high-quality website Fee for owning a domain Additional expenses on antivirus and other security measures The necessity to organize marketing programs In the beginning lack of traffic High initial costs No technical support |
Conclusion
The tendency of last years among dropshippers is to open stores on marketplaces. Even though the number of cons is even more than the pros, the stability, security, extensive choice of applications, and guidance for every problem make dropshipper choose this option. You do not need to worry about marketing, logistics, and website technical developments; the marketplace handles this. With your website, you receive total control of all spheres of the store and the dropshipping business. You can choose all suppliers, delay legal document processing, or set your own delivery terms. You need more time and money to create a unique design and support it regularly. You also need to organize constant marketing campaigns. At first glance, marketplaces are better in everyday dropshipper life. But with your own website, you can expand your business without limitations.
