With the above context, it is now time to know the main differences between e-commerce and dropshipping :
1. Initial investment
The initial investment to launch a business is often one of the main obstacles for those who want to have their own brand and one of the most common differences between e-commerce and dropshipping .
Although there are currently different sources of financing for entrepreneurs, with the arrival of dropshipping it is no longer necessary to have a lot of capital to start selling, since costs can be saved on inventory management and shipping.
2. Inventory management
As we mentioned in the previous point, inventory benin phone data management is also a difference between e-commerce and dropshipping and can define whether a person decides between one or the other.
With e-commerce , brands need to have stock of products to sell, otherwise they won't be able to promote them.
Dropshipping, on the other hand, allows you to accept product purchases from anywhere in the country using someone else's stock – in this case suppliers – and leaving all inventory control efforts in their hands.
3. Platforms to sell
There are many options available to an entrepreneur who wants to promote his or her products. For example, if he or she decides to sell via e-commerce, he or she can do so on a marketplace, social media, messaging platforms – such as WhatsApp – or on his or her own online store.
Dropshipping allows you to make sales on some marketplaces such as Amazon or Mercado Libre and, of course, in an online store using applications that link with suppliers such as AliExpress or CJ Dropshipping, to receive purchases.
The difference – which becomes a disadvantage – of this model is that a lot of control of the operation is lost since the supplier is the one who makes the shipments, so it is important that you keep a close follow-up.
4. Product catalog
A great advantage of dropshipping is the ease with which you can create a virtual catalogue of eye-catching products, which includes trendy items at affordable prices.
However, if e-commerce is used to sell items, the catalogue may be smaller and will be limited to the production capacity of the business.
With the right approach, it can become a great window for growth and differentiation since the customization of the items can be greater.
5. Earnings obtained
Dropshipping can offer a lower profit margin, depending largely on the number of sales made and the agreement reached with the supplier.
When an entrepreneur has his own online store , he can set his own prices based on his production and distribution costs. This allows for higher profits, even if he does not have a large volume of purchases.