How is dropshipping effective given the availability of Amazon?

[shoenice]

I've long dreamt of getting away from the 9-5 life. I met someone 6 months ago when on my travels in Latin America. She started a photography business 2 years ago and is making just shy of £100k p/a, whilst travelling. She showed me what she does, how she does it, and at the time it really inspired me and made me think - time to just maybe open up a site via Shopify and just give it a go, with no expectation.

Given that I do not have any smart ideas like that at present, I would probably go down the dropshipping type route. I initially thought to start up via Shopify, find a product through Aliexpress/alibaba, perhaps customise if possible (although it appears this is difficult as you can only do this via alibaba and they requires large minimum orders). But my understanding also, is that when you dropship from the likes of AliExpress, the delivery time is 2-3 weeks, perhaps more. This leads me to two questions.

1) Why would you order say a sleeping mask off of some random website with a delivery of 2-3 weeks, when you can browse through a ton of sleeping masks on Amazon and have it delivered the next day?

2) Why would anyone seek out a specific website for something such as a sleeping bag or poker set, when you can go on a website that everyone knows in Amazon? I recently purchased an electric toothbrush & wireless headphones. The first place I went was Amazon, and both my purchases were from there. I looked at some other well known sites via google. I didn't come close to even looking at a website where headphones are being dropshipped, and I wouldn't trust to purchase off of there.

I might be leading into the idea that dropshipping no longer works, at least because I keep reading this.

But then if it doesn't work, how has it worked given what I've mentioned above? How is it working with slow delivery, and when you don't have the presence of a site like Amazon?

A part of me really wants to give it a go, but without further guidance, it's very difficult to know if I'm genuinely wasting my time. I would be really grateful if somebody could help me to understand my questions better and provide a general overview. Is dropshipping totally dead? Is it all about building a brand first before offering your service online? After meeting this girl I said to myself - I promise I will give a go to some kind of basic online business. But I'm struggling to gain the information I need to believe that it's possible, and everywhere I look on the internet, it's all these dropshipping courses being advertised on youtube, and lots of very phoney markety content. Is Amazon FBA a better move? I'm just thinking in terms of audience, brand presence etc. But then I know a few people who were on Amazon and they all quit it for various reasons. They all hinted that it was very complicated, that the t&c's were complex and if you read online, there are a lot of horror stories. So it's difficult to know what to trust.

Thanks for reading.

 

[japancool]

If you're looking to get away from the 9-5, dropshipping isn't going to do it. Margins of 1-3% are not uncommon in dropshipping - which means for every £100,000 you sell, you're actually only making £1000-£3000.

At margins that slim, it doesn't take much to go wrong to wipe you out.

Far better to find a product that you can sell for a good margin, and either ship it out yourself, or use a 3PL that isn't Amazon.

 

[Deleted member 335660]

Yes it sounds great, but it’s not easy. We started a gift shop just prior to pandemic and set up a website to support it using Woocommerce.

I have been doing the Freshbananas SEO course and using Facebook advertising but still not magnificent. Obscure orders from all around the world.

You need to define your product area and customer very clearly and build a good website. A friend has been relatively successful with antiques on Etsy. We are focusing on 25+ female ex pats in Spain as this is where our shop is.

 

[wayzgoose]

First thing to do - forget about Alibaba. Look for UK suppliers to work with. There's plenty of options with a margin of around 40%.

 

[japancool]

Way back when, before 'tinterweb, shops were dropshipping white goods direct from the UK manufacturer. I imagine it's still doable now.

 

[fisicx]

Dropshipping isn’t something you can fire and forget. The site, products and performance all need constant attention. You with also need to look after marketing and manages returns. It’s not an easy way to make money.

 

[WaveJumper]

And if some of my sons clients are anything to go by the last few years have been a total nightmare for those in the drop-shipping business, stock taking ages to arrive due to the problems with shipping and deliveries etc, customers demanding refunds and if they did get the item the issues of returns and refunds.

Personally I would as suggested above look for UK suppliers but would suspect you need to find a niche product to be successful best of luck.

 

[AlanJ1]

Personally I would as suggested above look for UK suppliers but would suspect you need to find a niche product to be successful best of luck.

I second this, or buying stock from overseas but storing yourself and sending yourself.

 

[fisicx]

I know someone who buys end of line products and builds bundles. For example: sponge, car wash, shammy and polish. All fit in a Jiffy bag. He packs the bags in the evening while watching TV. Can’t recall exactly how much he makes but I know it pays the mortgage.

 

[antropy]

1) Why would you order say a sleeping mask off of some random website with a delivery of 2-3 weeks, when you can browse through a ton of sleeping masks on Amazon and have it delivered the next day?

You wouldn't. Plenty of wholesalers allow you to dropship with fast delivery. You can some here: https://www.inventorysource.com/

2) Why would anyone seek out a specific website for something such as a sleeping bag or poker set, when you can go on a website that everyone knows in Amazon? I recently purchased an electric toothbrush & wireless headphones. The first place I went was Amazon, and both my purchases were from there. I looked at some other well known sites via google. I didn't come close to even looking at a website where headphones are being dropshipped, and I wouldn't trust to purchase off of there.

Depends what it is, but for more niche items, or items that Amazon won't sell, a Google search is most people's next port of call.

Paul.