Dropshipping and The Fashion Business

Dropshipping and The Fashion Business

A look into a popular method of selling called dropshipping. it's a recent method that has been getting more and more traction, here's a look at what dropshipping is and how it could benefit your business.

With E-commerce being one of the most successful and adopted forms of business online, dropshipping evolved accordingly, in particular when applied to the fashion business. But what is dropshipping? Why is it so popular? What are the figures behind a prolific Shopify store? Let's analyse this in more detail:

The Concept Behind It

Dropshipping, as a selling method, was made famous by businesses like IKEA, for example. Nowadays, the whole concept revolves around Shopify (mainly) stores that are selling products provided by Chinese suppliers (Aliexpress, Taobao, DHgate to reference a few) with overcharged prices (due to branding purposes). This process is, of course, fully automated by an app called Oberlo, in which the owner of the store can virtually put products that are listed on those previously mentioned websites.

How does this apply to the fashion business?

Because the fashion business is mainly Chinese based, simple as that: what big drop shippers are doing now is basically re-branding high-quality Chinese products ranging from streetwear to watches into their personal clothing line. Sounds hard to do? In the end, it's not. The starting point is definitely the graphics setup for those actual products. After that, once the supplier has been chosen, Oberlo will automatically list all the products directly on the drop shipper's Shopify store. That's literally it.

How big are these store's figures?

They may vary, but some of the biggest streetwear brands, like Supreme, for example, started their business with the drop shipping method. Supreme of course evolved and developed and at this point, it's not correct to consider them "a simple drop shipping store", but their beginning all the way back was 100% related to this business model. Today, we can surely say that big drop shipping stores, in particular, the ones that are selling beachwear and so on. These stores can easily reach a 6 figures income in a matter of days (not joking)!

Is It Safe/Legal?

Legal? Yes. Ethical? Your decision: reselling products has always been a questionable way of doing business, especially if the branding is overcoming the actual product by 10 times. Drop shippers are, in fact, raising the price of their products considering also all the costs their marketing has on their income, so the actual product value is something that fluctuates between 2% and 3% of the actual listed product. Keep that in mind next time you are buying something from a Facebook/Instagram Ad!

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