Dropshipping has been a cornerstone element of online retail for many years, but there are a few common misconceptions that some may have about the service. Nidhi Giroti, Dropshipping Shop Manager at dropshippingXL, explains to us the benefits of introducing a dropshipping method into your business and how retailers can make the most of it.
DropshippingXL is one of the channels stemming from VidaXL, currently receiving ‘exponential growth’ within the business. Throughout European markets, especially, dropshipping awareness has increased. “We have seen a lot of small scale dropshippers become big in no time,” says Nidhi Giroti, Dropshipping Shop Manager at dropshippingXL.
For online businesses, the Australian market has become ‘very tempting’, Giroti says. Its ‘hassle-free’ model has attracted the attention of many businesses, and as online continues to boom in the current landscape, the market is showing greater potential for dropshipping. “There has been a change in buying patterns and the market shows a lot of potential. dropshippingXL also plans to focus more on the Australian market,” he tells Power Retail.
There are plenty of challenges facing the Australian retail landscape right now. As the world moves into a new phase of normality, retailers need to be aware of changing consumer behaviour and how they will impact online retail moving forward. “There is significant growth in revenue and market share for online retailers now,” says Giroti. “The biggest challenges are delivery to remote regions and delivery from other countries, which add to cost and to delivery times. vidaXL has its own warehouse in Australia that ensures lower delivery times. Further, we continuously look for new opportunities to improve customer experience.”
For many who wish to break into the e-commerce industry, dropshipping is an easy and entry-level way to get started. “Every online entrepreneur wants to be successful, but that comes with a lot of operational costs, manufacturing, and logistics,” says Giroti. “This is what makes dropshipping more appealing because you don’t have to worry about any of those things. You can start dropshipping today as it’s a low-risk business model.”
But with every business model comes its list of misconceptions. For Giroti, the most common is that you need an existing e-commerce platform or have a popular brand in place. This isn’t the case, as he explains. “We have seen non-experienced entrepreneurs become very successful. dropshippingXL supports and guides dropshippers on how to grow their business,” he says.
So, what’s the best way to get started in dropshipping if you’re new to the business model? According to dropshippingXL, it’s all about getting to know your market potential and carving yourself as a niche seller that stands out from the crowd. “Select a dropshipping company that can support you and has a strong presence in the market,” he tells us.
According to forecasters, the Australian e-commerce market is expected to expand by 15 percent YoY in the next five years. “Australia is a profitable market for dropshippers due to low operational cost and minimal entry barriers,” says Giroti. “dropshippingXL expects to see small businesses scale up and start dropshipping as seen in 2021 as well. Next to that, we expect more awareness around dropshipping and how it is an easy way to start your own business and entrepreneurial journey.”
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