Locate2u the Company & its Products ▾

Locate2u Pulse is a software platform designed for any delivery or service business. Learn more here.

Locate2u News

Locate2u News offers up-to-date logistics and e-commerce insights from across the globe, keeping you informed on industry trends and developments.

Locate2u Pulse

Locate2u is a software platform designed for any delivery or service business. Our solution helps these businesses improve their route efficiency, improve their customer’s delivery experience, and increase productivity, all while reducing the time it takes to plan routes.

Explainer: Why dropshipping is gaining popularity

Explainer: Why dropshipping is gaining popularity
Explainer: Why dropshipping is gaining popularity

Multinational e-commerce company Shopify believes dropshipping has not yet lost momentum and is “worth the investment.” The low-cost and relatively simple concept has gained popularity over the years. 

“Success lies in choosing the right products, maintaining profit margins, and choosing the right suppliers. Cover those bases, and it’s possible to create a successful, profitable online business as a dropshipper,” says Shopify. 

What is dropshipping? 

When you have decided to enter the e-commerce business, you are probably ready to handle another aspect that goes along with it. Let’s talk about designing, manufacturing, warehousing, packaging, and shipping those products you intend to sell. 

Shopify describes dropshipping as an order fulfillment method. “A business doesn’t keep the product it sells in stock. When an order is received, the seller sends it to another company that ships the product straight to the customer. The seller is a middleman between the customer and the company with the product.”

The benefit of dropshipping is it streamlines the selling of products online. You don’t have to lease warehouse space or deal with supply chain or inventory. It saves time and money and probably from a massive headache, too.

How does dropshipping work? 

Dropshipping is a business model between a customer-facing store and a supplier. 

Shopify says there are two ways to approach this new journey. You can independently seek wholesale suppliers worldwide or rely on third parties. You are utilizing apps like DSers, a Shopify app that connects businesses with thousands of suppliers.

“With DSers, you can browse AliExpress and import the products that pique your interest directly to DSers—which is connected to your Shopify store—with the click of a button. Once a customer buys a product, you can fulfill their order in the DSers app,” says Shopify. 

DSers automates most of the dropshipping process, meaning all you have to do as the store owner is check whether the details are correct. “The product is then shipped directly from the AliExpress supplier to the customer—wherever in the world they may be.”

Young entrepreneurs 

Popular YouTuber Charlie Chang, known for his videos on young millionaires, recently interviewed a 24-year-old who has been highly successful in dropshipping. He tells Chang that for the first nine months, it was difficult. When he started dropshipping, he only had $1,000, which he made from reselling streetwear. 

“I would put money into a store, make some money, invest it into another store. The first two years that I did dropshipping, I could do a little bit over 3 million in revenue by myself,” says the young man.

About the author

Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.

Capterra Pixel