Dropshipping is a very potential business in the present digital era. A great and affordable approach to starting a low-risk business, without the hassle of selecting, packing, and shipping products.
Even though it seems simple, there are several challenges, including choosing the right wholesale platforms, finding the right suppliers, and staying on track when trends shift so quickly.
We asked four dropshipping experts about their opinions on changes in supplier selection, the reasons why more and more dropshippers are adopting branded experiences, and what they predict the state of dropshipping to be in 2023.
So let’s begin, shall we?
Patrick Scherzinger, Managing Shareholder of Scherzinger Holding GmbH and considered the youngest member of the Forbes Council.
Due to fees and restrictions playing a significant role, dropshippers are evolving into branded experiences. Both platforms charge high fees, somewhere from 10-18% - this is significant and can really drop your margins. Also, you always have a dependency on Amazon and eBay, which can sometimes be bad if your listings get flagged or rank less well over time. Suppliers' choices haven’t changed much. The only thing that has become a lot more relevant is to stand out - either by fast shipping or revolutionary/unique products. Since dropshipping is evergreen, it will for sure continue working for a long time going forward. However, it will be more difficult to stand out, which is why most people will (which we see already) move away From AliExpress and other Chinese wholesalers to dropship, as the shipping times and also often times the quality is not inline.
Moonis Ali, dropshipping mentor.
People are shifting to branded products for a straightforward reason: dropshipping isn't a novel idea and the majority of people are already aware of it. Even if they aren't, information can be easily found by typing relevant keywords into Google. Right now, people are really focused on building their empires and their own brands. Customers of dropshippers experienced an average delivery time of 15 to 20 days, which is clearly unacceptable. That is why many shifts to branding. If a dropshipper utilizes Facebook advertisements like me and is supplying good branding materials, then the feedback score goes up; if feedbacks are not fantastic, they won't be able to run Facebook ads. Dropshipping is just a way to get started, and branding is a long-term game.
Talha Ali, eCommerce strategist and founder of devdot.us
Straight and forward answer about dropshippers turning into branded eCommerce: many people are moving away from Amazon because it's going to be super saturated now. Talking about suppliers, the selection has undoubtedly evolved over time; nowadays, dropshippers will choose reliable suppliers with fast shipping times. What is for sure is that trends will be changing in 2023 and no doubt 2023 will be the year of eCommerce.
Marius Krämer, dropshipping mentor.
Because they are making no more money, dropshippers are switching to creating their own branded eCommerce sites. If they are from FBA (fulfillment by Amazon), they do spend a lot of money on Amazon fees, but if you are creating your own brand, as with Shopify, I've discovered that most customers are happy with the fact that they keep more of their earnings. Actually, they are more independent, so if they want to move, and build a brand, they can do it there. They are keeping more money as I said in profits because they don't have to pay Amazon for advertising on that platform. Therefore, I think the major motivations for people investing in branded eCommerce are mainly independence and maintaining a profit. For example, in Germany, I see a big change when it comes down to suppliers' choices. Four or five years ago when I started eCommerce, I discovered that you may go to any supplier, and the only thing that was needed to consider was whether or not a supplier had a lot of orders and that has changed a lot. At that time, if the supplier's typical shipment time was two, three, or four weeks, everything was well. However, if you are now creating a shop with a four-week shipping period, you don't even begin because that is far too long. I observe a sharp rise in the demand for high-quality suppliers, high-quality products and good communication, and fast shipping time. Currently, the maximum average shipment times should be between four and seven days, but most individuals have a hard time finding such suppliers. Now CJ dropshipping, Zen Drop or Spocket is an alternative to Aliexpress or Alibaba. What I believe in 2023 will be the biggest trend, is that mobile shopping is getting bigger. I believe the average rate or the average ratio from desktop to mobile shoppers is right now 90 to 10. In my opinion, in 2023, it will be 99 to one because desktop shopping becomes more and more old-fashioned. I see only mobile shoppers in the future because social media platforms like Tiktok Instagram force, people to buy it from their phones directly and not switch devices. Another thing I believe will happen in 2023 is the importance of even fewer clicks to get the product you want. For example, the rule that is three or four clicks from starting page will decrease a lot in 2023 because it's all about pace. The typical customer is hardly ever eager to spend minutes scrolling through the store.
As you can see, trends are crucial to success in the industry. Customized items are gaining popularity and are likely to be the biggest trend in 2023. Contact us at firstname.lastname@example.org if you ever decide to switch to customized products, and we'll help you have the greatest possible experience with 3D-printed on-demand products.
And not to forget appreciation to all the experts who contributed to this roundup. Let us know, in the comments if you found this article useful.