{"id":19696,"date":"2024-05-30T09:00:00","date_gmt":"2024-05-30T01:00:00","guid":{"rendered":"https:\/\/blog.ninjavan.co\/en-ph\/?p=19696"},"modified":"2024-05-09T16:56:38","modified_gmt":"2024-05-09T08:56:38","slug":"dropshipping-vs-ecommerce","status":"publish","type":"post","link":"https:\/\/blog.ninjavan.co\/en-ph\/dropshipping-vs-ecommerce\/","title":{"rendered":"Dropshipping vs Your Own Ecommerce Business"},"content":{"rendered":"\n

Dropshipping is one of those business terms used loosely, especially for new players in the ecommerce space. One may easily think that dropshipping is ecommerce, and vice versa.<\/p>\n\n\n\n

But that\u2019s far from the truth because these two business models are different in a lot of ways, and fully understanding each will help you figure out what\u2019s more aligned with your business goals. If you haven\u2019t decided yet which model to go with, this article will help you.<\/p>\n\n\n\n

Also read:<\/em><\/strong> <\/em>Best Business Ideas You Can Start with PH100K Capital<\/em><\/a><\/p>\n\n\n\n

Dropshipping vs ecommerce <\/strong><\/h2>\n\n\n\n

Ecommerce is basically buying and selling stuff online. It can involve anything from physical products like clothes and furniture to digital downloads like games and music.<\/p>\n\n\n\n

It\u2019s like starting your own business from scratch<\/strong> and taking responsibility for all decision-making including what product to sell, where to sell them and the\u00a0 logistics. You\u2019ll set up websites or online stores in popular marketplaces like Lazada or TiTok Shop<\/a>.\u00a0<\/p>\n\n\n\n

Dropshipping is much simpler. You partner with dropshipping suppliers who already have the goods you want to sell. All you need to do is set up a website or online storefront where you can publish product listings and accept orders. <\/p>\n\n\n\n

Once orders are received, you can forward them to the supplier and they will facilitate the fulfillment and shipment of the orders to customers. <\/p>\n\n\n\n

Dropshipping is a retail method where you sell products online without keeping any inventory.<\/strong> You act as the middleman, earning the difference between the wholesale price you pay the supplier and the retail price you charge the customer.<\/p>\n\n\n

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With dropshipping, you don’t have inventory on hand. You just need a website or online storefront to process orders.<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n

Key differences<\/h3>\n\n\n\n

Their key differences are emphasized through these aspects:<\/p>\n\n\n\n

Inventory management<\/h4>\n\n\n\n

In dropshipping, you just need to focus on tapping new markets and closing orders. Your dropshipping supplier will take care of inventory management and fulfillment. <\/p>\n\n\n\n

In ecommerce, you source your own products and set up an inventory management system for proper control and tracking.<\/p>\n\n\n\n

Order fulfillment<\/h4>\n\n\n\n

The dropshipping supplier handles the fulfillment without requiring anything from you. However with ecommerce, you need to partner with a third-party logistics company to facilitate the deliveries. <\/p>\n\n\n\n

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#NinjaTip: <\/em><\/strong>Streamline your ecommerce fulfillment. Outsource your inventory management, order fulfillment and deliveries to Ninja Van so you can focus on your marketing and sales goals! <\/em>Partner with Ninja Fulfillment now!<\/a><\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n

Level of commitment and control<\/h4>\n\n\n\n

Ecommerce requires 100% from you in terms of all decision-making and building profitability. You need to oversee sourcing and procurement, marketing and sales, fulfillment, and after-sales. Full commitment is a crucial key for success.<\/p>\n\n\n\n

With dropshipping, you can just focus on marketing and sales and after sales. Everything else is done for you by the dropshipping supplier. Good for those only doing side hustles or want flexibility.<\/p>\n\n\n\n

Profit margin<\/h4>\n\n\n\n

Since dropshipping suppliers already have set prices for you, there may not be much room for you to increase your margins. You\u2019re stuck with the cost they charge and the percentage you get from every product sold. <\/p>\n\n\n\n

While on ecommerce, since you source your products \u2014 there\u2019s always the option to customize and negotiate the cost. You can play around your pricing as well.<\/p>\n\n\n\n

Similarities<\/h3>\n\n\n\n

Meanwhile, these two business models are similar on two important aspects:<\/p>\n\n\n\n

Marketing and sales<\/h4>\n\n\n\n

Since the internet is already a saturated space for businesses, focusing on marketing to drive awareness and traffic to your online store is important. Set up a budget for ads<\/a> or collaborate with influencers to have a strong online presence and get noticed by your target audience.<\/p>\n\n\n\n

Customer service<\/h4>\n\n\n\n

Both dropshipping and ecommerce are customer-centric. When they order something from you, they expect good product quality and fast delivery. Whatever friction they encounter in the process would definitely be a problem for you (not your suppliers). Customers also expect a response when they have questions or issues about your product.<\/p>\n\n\n\n

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#NinjaTip: <\/em><\/strong>When it comes to getting your products to your customers, Ninja Van is your business’s trusted partner for seamless deliveries and logistics. Enjoy exclusive shipping rates and perks when you <\/em>Sign up for a VIP Shipper account!<\/a><\/em><\/strong><\/em><\/p>\n<\/blockquote>\n\n\n\n

Pros & cons of dropshipping vs ecommerce<\/strong><\/h1>\n\n\n\n

Now that we understand what makes dropshipping and ecommerce different, you can now start to work on determining which business model suits you best. <\/p>\n\n\n\n

And if you still haven\u2019t come into a decision, we got you this quick list of pros and cons for both of them. <\/p>\n\n\n

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Factors to consider when choosing between dropshipping vs ecommerce<\/strong><\/h1>\n\n\n\n