What is the difference between eCommerce and dropshipping? I will let you know through some pointers. Which is more beneficial? Which is easier to start and takes less investment.
So there are some points, we will compare both, many people already know what dropshipping is but for those who don’t know it gives a little idea, dropshipping is a business method of eCommerce, find out more about what dropshipping is.
Which is the best model?
If we talk about getting started, we can start with a little skill with a very low investment. If we talk about the difference between dropshipping and eCommerce, eCommerce is a bit tougher than dropshipping, which means eCommerce takes time to get started and a lot has to be prepared.
The investment cost for start dropshipping and eCommerce?
Now let’s talk about the initial cost or investment cost, which is the business cost or initial cost to start any business. Which is how much it takes dropshipping and how much it takes eCommerce.
If you want to do dropshipping business through Shopify
- 29 Dollar has a basic monthly plan (Indian currency near about Rs 2141),
- You do not have to buy hosting.
And if I talk about eCommerce
- Need a domain with hosting
- Required woocommerce theme to build an eCommerce website
- Need a lot of products and product photos are required.
Inventory
Now let’s talk inventory, the dropshipping model is such that you do not need to store any products and no need to keep any product in the warehouse.
Know more about top products for dropshipping
What is required to start an eCommerce business?
- You have to store the physical products in it
- And you have to keep the product in very large quantities.
Only then you will be able to start an eCommerce business. If you want to start my business with five or ten products, it will not be possible.
So here dropshipping is the best option.
Delivery Timing
This is the best difference between eCommerce and dropshipping, delivery timing because a long delivery time can make you lose your customers.
So it takes a little time in dropshipping, it takes about 15 to 20 days to deliver a product. When you order a product from a website such as AliExpress, or Shopify, they will send the order to the supplier. And the supplier will send it to the customer, this takes a lot of time.
About eCommerce, If you get the order of the product today then you can dispatch the product today, otherwise the next day you will be sure to dispatch the product. eCommerce from dropshipping is comparatively the best here.
Profit Margin
If we talk about profit, dropshipping is less profitable. When we buy a product from AliExpress or any other website, and this order is forwarded to the supplier, the cost of a product is very high.
In the case of eCommerce, you have a big store and you have to buy lots of products for eCommerce in advance. So you can buy these multiple products at a lower price.
So Profit Margin is high in eCommerce compared to dropshipping. You can start dropshipping without investment but eCommerce needs a large amount of investment. Obviously, if you want to make more profit, you need to invest more.
Business control between eCommerce between dropshipping
One of the most important things is business control because the dropshipping business is not controlled by your hands. For E.g. you receive the order from the customer through your own website or any social media and then you forward the order details to AliExpress or any other merchant website, then those website orders are forward to the supplier.
Business control dropshipping
- Now the supplier is sending the product to the customer, but what color, what size, they are sending it to the customer that you can’t control anything.
- Dropshipping business is not controlled by your hand
Business control eCommerce
eCommerce controls everything in your hands.
Limitation of Products
Dropshipping is a research-based business. If a product is not sold, you can remove it from your website because you do not have to store any product in advance. But for eCommerce, you have to buy the product in advance or it has to be made and stored.
So there is no risk and very easy to dropshipping in case of product limitation. But eCommerce is risky in terms of product limitations.
Market Risk
The market risk in dropshipping is very low because you do not have the product. You just market the product according to demand. However, in eCommerce, you need to market the same product that you already have in store.
So there are some points that I have done the difference between eCommerce and dropshipping now choose which business method you want to start.
If you have very little investment of 15 to 20 thousand rupees, then I will suggest you, first, do the business of dropshipping, earn money from dropshipping and go eCommerce later.