Alternative to dropshipping?

[CompanySmart]

Hi
I originally started a shopify store.
It was to sell home and garden organisational products using the dropshipping method via Alibaba etc
Having placed test orders myself and not received the products, I’d hate to imagine what it would be like dealing with a vast number of unhappy customers should the orders scale up rapidly.
Does anyone have advice on how else you could monetise from this without the risk of international shipping or all the time consuming maintenance of customer relations? Any alternative directions to explore would be appreciated.
Thank you

 

[fisicx]

Use a different fulfilment company. Use someone with a uk warehouse.

 

[GraemeL]

As @fisicx said. UK warehouse. If you decide not to, then consider how you will deal with customer returns which as a distance seller you will have to accept. Customer does not need to provide a reason.

I can assure you it's not as easy money as you might think.

 

[UKSBD]

Affiliate marketing.

Find someone who already sells the products, send the customer to them, make it clear they are the seller, earn commission on any sale.

You won't make anywhere near as much per sale as drop shipping but as long as it's clear the contract is between the purchaser and the seller you won't have the hassles you describe.

 

[GeorgePeterson]

A couple of years ago, I worked in a large office where one of my colleagues was outsourced to tech support and had a lot of free time. During that period, I also explored dropshipping and sold items on eBay and Amazon. Unfortunately, I encountered numerous delays and ended up with a poor rating. It felt like a waste of time, and I believe that more serious investments are needed for success in this field.

 

[antropy]

It was to sell home and garden organisational products using the dropshipping method via Alibaba etc

Find UK-based dropshippers.

without the risk of international shipping

Only ship to the UK.

time consuming maintenance of customer relations?

Find a dropshipper that actually delivers.

Paul.

 

[fantheflames]

Dropshipping is very risky in my view. Instead, creating your own branded product line through white labelling might be a more viable option. This would allows you greater control over your inventory and quality, among other benefits. However, it’s important to note that it does require a larger upfront investment. I agree with Paul, if you wanted to go the dropshipping route, research reliable suppliers to minimise your risks.

 

[BillyB]

So as someone who's probably spent the last 10 months researching and trying to find a business model that is viable I've come to the conclusion that dropshipping is completely dead, unfortunately the likes of Alibaba & Aliexpress aren't great and personally if I was going to order something from China I'd want to fly out there first, check the factory & the products first rather than ordering blind.

The best Shopify business models at the moment seem to be DTC where people are selling own branded mattresses, toothbrushes, body washes etc and then promoting them on TikTok, Instagram & Facebook via other content creators who would then receive a share of the profit for driving the sales.

A great example of this which I've seen has been HiSmile, essentially all they're doing is selling multi coloured toothbrushes and toothpastes and they seem to be everywhere I turn on social media. I'm pretty sure they hit $10m of revenue within 18 months which is absolutely nuts.

The trickiest part of all this is going to be the purchasing of the stock and then storage, whether you rent somewhere out or use a micro 3PL to start with to dispatch orders.

 

[antropy]

I've come to the conclusion that dropshipping is completely dead

We have a dropshipping OpenCart store that makes around a 14% margin. Sales are only in the thousands per month but if we could increase the top line the bottom line would scale up too. It's a side project so we can't dedicate that much time to it but the sales are slowly growing.

A great example of this which I've seen has been HiSmile, essentially all they're doing is selling multi coloured toothbrushes and toothpastes and they seem to be everywhere I turn on social media.

There are loads of these companies selling stuff like that on social media. As you scroll you see something every other video. I tried HiSmile - didn't work at all.

Paul.

 

[fisicx]

Social media only works if your target customers use social media. I buy loads of stuff online but don’t use TikTok, Facebook, instagram etc. very few of my friends do either. Which means we are unlikely to see your promotions. Email still works as does snail mail. Got an offer through the post yesterday that I took advantage of.

It’s all about knowing your target customer.

 

[antropy]

Social media only works if your target customers use social media. I buy loads of stuff online but don’t use TikTok, Facebook, instagram etc. very few of my friends do either.

Not everyone's old like you Just kidding.

But I'm open to buy random stuff I see in facebook videos. Often it's rubbish and doesn't work as claimed though.

Paul.

 

[fisicx]

I watch YouTube videos of traction engines and steam trains. And Lego. I still seem to end up with adverts for ladies fashion. Can’t understand it, I’ve already got enough dresses.

 

[antropy]

I watch YouTube videos of traction engines and steam trains.

I love a good engine video. This was an awesome watch: https://www.channel4.com/programmes/guy-martin-top-gun

And Lego. I still seem to end up with adverts for ladies fashion. Can’t understand it, I’ve already got enough dresses.

Lol indeed.

Paul.

 

[fisicx]

This is also awesome:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

And saw the beast last weekend:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

Nothing to do with dropshipping but this is UKBF and things just happen.

 

[wayzgoose]

I've come to the conclusion that dropshipping is completely dead

No, it's not

likes of Alibaba & Aliexpress aren't great

They are certainly not so why even think of using them

The best Shopify business models

More obsession with Shopify !

 

[antropy]

This is also awesome:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

And saw the beast last weekend:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

Nothing to do with dropshipping but this is UKBF and things just happen.

Love both of those, I do love a big engine. I thought my own 5 litre V8 was big but those are beautiful.

I've also seen the 24 litre Napier Railton at Brooklands a couple of times but never on the days where they start it up.

Paul.

 

[antropy]

More obsession with Shopify !

Shopify has it's place and I'm a Shopify shareholder but its limitations mean there's still a place for custom solutions.

Paul.

 

[DontAsk]

I watch YouTube videos of traction engines and steam trains. And Lego. I still seem to end up with adverts for ladies fashion. Can’t understand it, I’ve already got enough dresses.

One of the largest (maybe the largest) UK model railway forum often carries lingerie and other female fashion adverts. Oh, hang on, maybe it is appropriate

 

[Julibees]

There's another approach you could consider: partnering with established small businesses.

You could apply to become their retailer and inquire about their dropshipping options.

We, for example, are more than happy to provide dropshipping services to any pet-related small business. All they need to do is list our products on their website or any other channel (similar to affiliate marketing). When a customer places an order on their site, they simply notify us and we'll handle the shipping.

The end result is a completed transaction, with them earning approximately 25% profit without any upfront investment in products.

 

[zomex]

Drop-shipping is a really tough gig. It's a massively overhyped business model. For every 1 success story there's probably hundreds that have failed. When I say that I am directly talking about the Aliexpress/Shopify get rich quick side of the industry.

I would second the advice of others. Like many you had a bad experience with Aliexpress so looking for a smaller or local company is a wise move. It would of course depend on your target, who you're shipping to and what product(s) you are promoting.

Affiliate marketing is tried and tested with no risk. You could start affiliate marketing and then look to scale from there once you have an idea for what is in demand.

 

[antropy]

I originally started a shopify store.

Did you consider open source solutions instead to keep your monthly overheads low and your profits high?

OpenCart vs. Shopify: Cost Calculator - Antropy - OpenCart Developers

When choosing an ecommerce platform, it's important to consider not just the upfront costs but also the hidden fees that can impact your profitability over time. Shopify, while user-friendly, operates on a subscription model with transaction fees for each sale. For example, the Basic Shopify...

www.antropy.co.uk

Paul.

 

[lesliedocherty]

Wafer thin margins, 5-15% returns rate, Faulty items, Marketing costs, customer support etc.

There can't be much money in it, I agree with the previous poster and go down the affiliatte rate and make 5-10% commission on the order

 

[antropy]

Wafer thin margins, 5-15% returns rate, Faulty items, Marketing costs, customer support etc.

Our gross margin is 15% and the wholesaler handles returns/delivery issues.

It's not great, but it's something.

Paul.

 

[Dandan2]

So as someone who's probably spent the last 10 months researching and trying to find a business model that is viable I've come to the conclusion that dropshipping is completely dead, unfortunately the likes of Alibaba & Aliexpress aren't great and personally if I was going to order something from China I'd want to fly out there first, check the factory & the products first rather than ordering blind.

The best Shopify business models at the moment seem to be DTC where people are selling own branded mattresses, toothbrushes, body washes etc and then promoting them on TikTok, Instagram & Facebook via other content creators who would then receive a share of the profit for driving the sales.

A great example of this which I've seen has been HiSmile, essentially all they're doing is selling multi coloured toothbrushes and toothpastes and they seem to be everywhere I turn on social media. I'm pretty sure they hit $10m of revenue within 18 months which is absolutely nuts.

The trickiest part of all this is going to be the purchasing of the stock and then storage, whether you rent somewhere out or use a micro 3PL to start with to dispatch orders.

Dropshipping is far from dead and your 'best Shopify business models' rely on large upfront costs.

Dropshipping is a perfect way to test product market fit without upfront investment.

 

[Dandan2]

Drop-shipping is a really tough gig. It's a massively overhyped business model. For every 1 success story there's probably hundreds that have failed. When I say that I am directly talking about the Aliexpress/Shopify get rich quick side of the industry.

I would second the advice of others. Like many you had a bad experience with Aliexpress so looking for a smaller or local company is a wise move. It would of course depend on your target, who you're shipping to and what product(s) you are promoting.

Affiliate marketing is tried and tested with no risk. You could start affiliate marketing and then look to scale from there once you have an idea for what is in demand.

Looking for a smaller or local company, as well as Affiliate marketing is just as a tough gig as dropshipping. The real reason hundreds fail, is because everyone wants fast, easy cash which doesn't exist.

 

[Karimbo]

Dropshipping is terrible.

I get orders in at 11AM and then followup email from the customer at 3pm asking why hasnt it been sent off yet.

ebay customers are the worst! Mate, i will get it done and drop it off before last post. My dispatching it at 2pm for you wont make it get to you any sooner. Plus the margins are paper thin on there too.

 

[antropy]

Dropshipping is terrible.

I get orders in at 11AM and then followup email from the customer at 3pm asking why hasnt it been sent off yet.

How would selling your own products from your own warehouse be any different?

Paul.

 

[Karimbo]

How would selling your own products from your own warehouse be any different?

Paul.

Just highlighting the impatience of customers. I can at least tell them they're going to receive it tomorrow, not to worry. Imagine I sent it out on a 7-10 day consignment and dealing with these customers who expect it so soon.

Never mind the fact that it's probably not very profitable for the Chinese supplier to pack and ship these out individually by air freight. They are probably paying slave wages for the packers so mistakes is bound to happen and poor quality products to go out.

I started of with my own "dropshipping esque" supplies when I started ecommerce. I basically use aliexpress as a just in time fulfilment so I had like 3-4 qty of each item and sold them on. I had my hands on the product and could inspect and repackage them with all English and brand name of mine.

Then whatever product worked well - I just bought in bulk. Its odd the bulk prices are the same per unit landed as aliexpress

 

[antropy]

Just highlighting the impatience of customers. I can at least tell them they're going to receive it tomorrow, not to worry. Imagine I sent it out on a 7-10 day consignment and dealing with these customers who expect it so soon.

Our dropship supplier is UK-based and offers next day delivery.

Paul.

 

[Karimbo]

Our dropship supplier is UK-based and offers next day delivery.

Paul.

That's great for you. My sector doesnt have UK dropshipper and that's not a problem for me. It does suck having to shut down my store when going on holiday. Maybe I'll do 3PL when I grow larger.

 

[antropy]

It does suck having to shut down my store when going on holiday.

You need to hire some help ASAP!

Paul.

 

[zomex]

Just highlighting the impatience of customers. I can at least tell them they're going to receive it tomorrow, not to worry. Imagine I sent it out on a 7-10 day consignment and dealing with these customers who expect it so soon.

Never mind the fact that it's probably not very profitable for the Chinese supplier to pack and ship these out individually by air freight. They are probably paying slave wages for the packers so mistakes is bound to happen and poor quality products to go out.

I agree. Been there tried that. It's a game of spending a lot on Facebook ads to test different products/campaigns. You may get lucky and have a success, you ride it out until too many competitors appear or the trend dies and then you spend that money trying to find the next big product.

I started a dropshipping store, had some organic sales but as you say there are just too many issues with the model if you are having them shipped from China. Also if you are trying to go with a store with a mass of products you will find issues with suppliers disappearing.
In most cases margins are tiny, quality is a big problem, big delivery delays don't work well in this day and age.

However, it's a great model to test the market. Or if you find a perfect supplier where you are sending them a lot of sales and it's a mutual benefit. Overtime you can work directly with them, purchase wholesale etc. There are many examples of these products out there but eventually they get flooded with competition or it ends when the trend dies out.

 

[Karimbo]

You need to hire some help ASAP!

Paul.

I'm at the stage now where it would be really uncomfortable to get my first employee.

I would not to move out of home office, and hire FT staff. Im making a comfortable living right now. I should probably take the plunge as the extra hand will allow me to be hands off doing packing and posting and do marketing and product development all day long. But the increase in expenses will feel like I've gone back to being a startup again - in terms of halving my renumeration from the business and going back to how I was 2 years ago.

In my mind I will get another proper staff FT once I get to the stage where I can't physically do any more work and i NEED to have extra hands.

 

[zomex]

As a side note if you can dropship from a UK supplier to UK customers it makes perfect sense.

I know for a fact https://www.wayfair.co.uk/ for example are dropshipping a lot of their products.

I found a wardrobe on there. Searched Google for the name and found the manufacturer on Amazon. Saving a good 40% buying direct.

You think of a product that big and heavy there is absolutely no need for a manufacture to send it to Wayfair for them to store it and then send it again to the customer.

It's an example where dropshipping is working for the big players. A far cry from the get rich quick Aliexpress dropshipping people selling courses.

 

[antropy]

I'm at the stage now where it would be really uncomfortable to get my first employee.

Ah yes the comfort zone

It's certainly extremely uncomfortable I remember it well.

But once you do it, if you get someone good, your business will grow and pay for them many times over very quickly.

Paul.

 

[Karimbo]

As a side note if you can dropship from a UK supplier to UK customers it makes perfect sense.

I know for a fact https://www.wayfair.co.uk/ for example are dropshipping a lot of their products.

I found a wardrobe on there. Searched Google for the name and found the manufacturer on Amazon. Saving a good 40% buying direct.

You think of a product that big and heavy there is absolutely no need for a manufacture to send it to Wayfair for them to store it and then send it again to the customer.

It's an example where dropshipping is working for the big players. A far cry from the get rich quick Aliexpress dropshipping people selling courses.

Not a bad shout, I haven't considered that. Where do you find UK xdropshippers are they on a directory or do you have to find manufacturers and get them onboardvto your program? I am guessing the latter is better if you want to protect yourself. If they're in a directory it's just going to be a nightmare with copycats and people driivng down the prices so they're making couple quid on each dropship.

Wayfair is a really well designed marketplace I dont think the average joe knows that. Everyone knows ebay is a marketplace, some might know amazon to be a market place. But very few people think about WF as being one of them.

When people say "you can't do online retail any more, amazon has cornered the market", they dont know that amazon is a terrible place to buy stuff. It's GUI is like a really old database. Every seller just keyword optimises for everything so when you search for amazon you get a tonne of rubbish. For things like furnture you need loads of well curated images that show the item in situ at home.

Thats where the future of ecommerce is - build niche specialist sites where the store is an expert in this product, has search and filtering down for that product niche.

 

[wayzgoose]

Not a bad shout, I haven't considered that. Where do you find UK xdropshippers are they on a directory or do you have to find manufacturers and get them onboardvto your program?

There are 100s of UK dropshippers. Go to trade shows, talk to people. Many don't even advertise the fact they will dropship. Why anyone would try and start a business using Chinese suppliers is beyond me.

 

[antropy]

There are 100s of UK dropshippers.

There aren't as many as you'd think. It was very hard for us to find one and many of the suppliers who had "dropship" pages simply didn't respond.

Paul.

 

[Karimbo]

There aren't as many as you'd think. It was very hard for us to find one and many of the suppliers who had "dropship" pages simply didn't respond.

Paul.

The whole point of being a distributor or wholesaler is because you casn buy 10,000 units of a product and then sell off 200-1000 pcs to retailers.

I cant imagine many would want to pack and post 1pc of stock at a time - the HR costs for that is going to be huge.

I have seen dropshipping (sort of) in print though. In fact I'm going to get into it initially as a dropship but then Im gooing to build my own printing facility when I eventually do build out to a proper commerical unit with staff.

Amazon, aliexpress can't compete with you on bespoke UV printed merchandise..

But I have also seen people just add couple quid onto trade printers prices and resell them on.

 

[antropy]

The whole point of being a distributor or wholesaler is because you casn buy 10,000 units of a product and then sell off 200-1000 pcs to retailers.

I cant imagine many would want to pack and post 1pc of stock at a time - the HR costs for that is going to be huge.

Unless it's highly automated. The benefit is the dropshipper does all your marketing for you and handles customer support questions when they don't require a refund/replacement etc.

Paul.