Dropshipping Philosophy

Dropshipping, by itself, usually does not offer a large competitive advantage because manufacturers and distributors will sell to retailers at their lowest prices ONLY if the retailer purchases products in volume all at once, which means the retailer has to store these products and ship them to their customers themselves.

Therefore, Dropshipping could work for you if you already do buy products in volume and have a place to store them, and so already do sell products at a very extremely competitive prices, and you just want to add dropshipped products to enhance your product offering.

For instance, a customer visits your online store and selects a product they have searched on the internet and found you have the lowest price, and they notice you also offer another product they’re interested in, one that you are dropshipping that doesn’t have a very competitive price, but since they found what they want and are going to checkout, they decide to throw dropshipped one into their basket out of sheer convenience, which is important to customers. The beauty of dropshipping is that it enhances the product offering of a retailer who already buys products in volume, warehouses them, and is able to sell them at the lowest prices on the internet.

The internet cultivates extreme competition and retailers try to get the most sales by having the lowest prices, however, the retailer that has the lowest prices will ALWAYS be the one that can pay for the most volume from a manufacturer. This being the case, Amazon will ALWAYS be able to offer a lower price, for instance Amazon can do many multi-million dollar volume buys from a manufacturer, and will therefore be able to sell it way less than anyone else can, and still make a profit.

These things being said, I would consider becoming a manufacturer instead, however, if you still want to try dropshipping, you should not make a big initial investment in it, you should start out with a very low cost solution. There is no single software solution that can handle every dropship supplier since different suppliers send and receive data slightly differently. Therefore, any dropship software will likely require some tailoring and further development to suit your particular needs.

DropshipCommerce might be something you would be interested in.

A requirement of a drop shipping is that retailers present accurate price and quantity data on their WooCommerce store to prevent accidentally selling products that are actually out of stock at the suppliers. Supplier inventories change, retailers send orders to suppliers, and suppliers provide tracking numbers, all on an hourly basis. Therefore, software that provides a two-way data communication connection between the supplier and the WooCommerce store to handle these functions is a necessity.

Cloud servers jam many tenants into one complex, forcing them all to use the same limited resources, thus making them ghettos. It’s better for a local machine to do the heavy processing, since local machines have tens of times more resources available without paying a subscription or a hefty price, and the user has much more independence and control.