1) Overview of eCommerce Dropshipping
Dropshipping is a popular order fulfillment method used by online retailers. It allows eCommerce platforms to accept and ship orders without the need to keep inventory or handle the product. The process involves third-party(s) who are responsible for manufacturing, packaging, labeling, and shipping the product.
Dropshipping is a cost-effective selling method that requires little investment and manpower. The process removes several barriers to entry for sellers, allowing more players to freely enter the market. In this article, we shed light on the eCommerce Dropshipping industry, understand how it works, and help you choose the right dropshipping partners for your business.
2) How does eCommerce Dropshipping work?
The process of dropshipping involves different parties and several stages with a large number of processes executed remotely. Here is how eCommerce Dropshipping works.
2.1) Key players
Dropshipping involves three main players.
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The seller
The seller is the owner of the eCommerce platform and is responsible for marketing the product and acquiring customers. The seller uses on a digital platform to receive orders from customers, and places purchase orders without the need to keep any reserve inventory. -
The platformThe platform allows the seller to create a digital store. This store is used to put saleable items on display, receive orders, and accept payments. Once orders are received, the platform can also be used to connect with vendors and place purchase orders.
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The vendor(s)The dropshipping vendor is responsible for manufacturing, packaging, labeling, and shipping the product. The entire lifecycle of dropshipping is handled by vendors. Sellers often use service providers to connect with vendors via digital platforms.
2.2) Steps involved in Dropshipping
Dropshipping is comprised of 3 key steps:
2.2.1) Order processing
The first step of eCommerce Dropshipping is the processing of orders. When companies receive orders for a product, they identify if the product is available with the vendor. After due verification, go-ahead from vendors, and processing of payment the order is accepted by the company.
2.2.2) Sourcing
Once the order is accepted, the vendor(s) is informed and the product is manufactured and packed by the vendor(s). The process may involve more than one vendor for different stages of the dropshipping process.
Vendors providers also provide white label services for sellers. This allows them to sell custom-branded products. Further, vendors can also be used to create customized products.
2.2.3) Fulfillment
After the order is packed, it is labeled and marked for shipping to the customer. The vendor then hands the product to a shipping company that is responsible for delivering it to the customer.
During the fulfillment process, the vendor sends the necessary shipment and tracking details to the seller. This information can then be forwarded to the customer to track the delivery of the product.
3) Top 10 eCommerce Dropshipping Service Providers in the U.S.
Now that we understand how eCommerce Dropshipping works, let us take a look at the top dropshipping service providers in the U.S.
3.1) Oberlo
Oberlo is a dropshipping platform owned and operated by Shopify. The platform allows users to connect with vendors on AliExpress and sell over 100 million products.
Key features:
- It allows sellers to search for items on AliExpress from the platform itself.
- It offers 24x7 customer service.
- It can be used to manage inventory and listings.
- It can be used to track orders.
Pros:
- The platform can be used to manage large order volumes.
- The platform automates order processing for sellers.
Cons:
- The platform only works with Shopify stores.
- The platform can only be used to sell items from AliExpress.
3.2) DSers
DSers is another dropshipping platform that can be used to sell items from suppliers on AliExpress. It is an automation platform that can be used to place and manage orders from AliExpress.
Key features:
- It allows users to automate bulk orders.
- It allows sellers to create bundles of products.
- It allows sellers to manage multiple stores.
Pros:
- The platform allows users to quickly place hundreds of orders through its automation capabilities.
- The platform is supported in multiple languages.
Cons:
- The platform only works with AliExpress.
3.3) Spocket
Spocket is an international dropshipping platform ideal for cross-border selling and supply.
Key features:
- The platform offers a wide range of discounted products.
- The platform automatically updates inventory.
- The platform can be used to fulfill orders with a single click.
Pros:
- The platform allows sellers to sell items across different countries.
Cons:
- Sellers are unable to view the inventory levels of suppliers through the platform.
3.4) CJDropshipping
CJDropshipping is a platform that allows sellers to ship items from China to over 200 countries. The platform works with 1688 and Taobao marketplaces.
Key features:
- Sellers can import suppliers’ inventory with a single click.
- The platform also offers print-on-demand products.
- It can be used to create videos for best-selling products in a store.
Pros:
- It can be used on a mobile device to manage the store.
- It has a vast POD product library.
Cons:
- The platform fees are very high.
3.5) Apliiq
Apliiq is a print-on-demand dropshipping platform for custom-made apparel products.
Key features:
- The platform offers white label manufacturing services.
- The platform automatically fulfills orders.
- The platform allows sellers to ship items within a week.
Pros:
- The platform has a wide range of customization options.
- The platform works a pay-as-you-go model with no upfront fees.
Cons:
- The platform has a product library limited to apparel and related accessories.
3.6) Modalyst
Modalyst is a global dropshipping platform. It allows sellers to select a wide range of products from suppliers on AliExpress.
Key features:
- It provides private label services.
- It offers express order fulfillment solutions.
Pros:
- The platform can be used to ship items worldwide.
- The platform offers 24x7 customer support for sellers.
Cons:
- The platform charges high transaction fees.
3.7) EPROLO
EPROLO is an international AliExpress dropshipping platform. It can be used to ship products worldwide.
Key features:
- The platform offers custom label options.
- The platform offers automated order processing and fulfillment.
- The platform can be used to manage inventory through the platform.
Pros:
- The platform offers express shipping services.
- The platform offers a wide range of customization options for product branding.
Cons:
- The platform has sub-par customer service.
3.8) Zendrop
Zendrop is an international dropshipping platform. It allows sellers to connect with customers and suppliers from around the world.
Key features:
- The platform automatically fulfills orders.
- It can be used to get custom packaging for products.
- It also provides order tracking capabilities.
Pros:
- The platform offers several automation options.
- The platform offers reliable returns and exchange policies.
Cons:
- The platform charges high fees for express shipping.
- Custom branding options are only available after a certain minimum order quantity is achieved.
3.9) Syncee
Syncee is another global dropshipping service provider. It is known for express shipping services along with a vast product catalog.
Key features:
- The platform has a catalog of millions of products.
- The platform offers discounted rates.
- The platform offers automated order and data sync.
Pros:
- The platform has a large network of suppliers.
- It can be used to create, manage and alter listings through a single dashboard.
Cons:
- The platform does not offer returns or exchange management.
3.10) DropCommerce
DropCommerce is a U.S.-focused dropshipping platform. It offers express shipping options with the United States.
Key features:
- It offers guaranteed order fulfillment.
- It can be used to access exclusive discounts.
- It provides automated currency conversion for sellers.
Pros:
- It offers a high-quality customer support team.
- The platform tags different suppliers based on the type of products, services, and more for easy identification.
Cons:
- The platform charges high fees compared to competitors.
4) How to choose an ideal Dropshipping Service Provider?
The sheer number of dropshipping service providers in the U.S. can overwhelm and confuse sellers. Therefore, here are some key factors to keep in mind before choosing a dropshipping service provider for your eCommerce business.
4.1) Pricing
The pricing structure of the provider is one of the primary factors to consider when selecting a service. Since dropshipping income is derived from margins that remain after order fulfillment, the fees can seriously impact profitability.
However, this does not necessarily mean that businesses must choose the cheapest carriers in the market. A shipping carrier that is significantly cheaper than the competition is likely to offer poor-quality products and services. Therefore, it is important to identify margins and goals, consider affordability and then choose a reasonably priced dropshipping provider.
4.2) Coverage area
The serviceable area of a provider is a key factor for determining an ideal platform for your business. The coverage area not only determines which customers you can target but also helps you understand which suppliers or vendors you can source your products from.
A larger coverage area also means that customers would get high-quality service and a better delivery experience. Further, it reduces the cost of operations and improves the odds of successful fulfillment.
4.3) Services and features
The services provided by a dropshipping platform are key to choosing the right partner. When you look for a dropshipping service provider, you must look for platforms that offer services that are relevant to your business and target audience.
Further, providers with additional features help make online selling smoother and more efficient. Therefore, look for service providers with add-on features to compliment your store experience.
4.4) Historical performance
With so many options available in the market, it is important to consider which ones are worthy of your time and business. One of the best ways to do this is to assess the past performance of the provider. This can be done by perusing reviews of the provider, reading testimonials from previous clientele, and getting a sense of the type of clientele handled by the platform.
Final thoughts
Dropshipping is a vast industry with a myriad of suppliers, platforms, and stores on offer. In such a competitive market, it becomes imperative to stand out and offer something unique. To be able to achieve this, you need your system to be productive, your vendors to be competent and your platform to be efficient. With a combination of these, a dropshipping business can thrive and grow in the dynamic business landscape that is the United States.
FAQs
1. Which is the best platform for eCommerce Dropshipping in the U.S.?
Some of the best eCommerce Dropshipping platforms in the United States are Oberlo, DSers, CJDropshipping, Spocket, and Modalyst. These platforms combine the best shipping services with a diverse set of suppliers and a vast catalog of products.
2. How to choose the best Dropshipping service provider for eCommerce?
Some of the key factors to consider while choosing a dropshipping service provider eCommerce are the pricing structure of the platform, the serviceability of the platform, quality of customer support, types of features and services offered, and reviews of the platform from previous and current clients.