For the first time, eCommerce sales topped $1 trillion dollars – and that’s just in the U.S.

Naturally, such a large industry is also very competitive. You may have thought about starting your own eCommerce business, only to be intimidated, and unsure of where to start.

But there is a way to get ahead. If you are looking for a competitive advantage, you can find it in dropshipping.

What is it, and how can it work for you?

This eCommerce and dropshipping guide will tell you all about it.

What Is eCommerce?

First, let us talk about eCommerce. eCommerce is a catch-all term for selling products online.

These products can be clothing, electronics, technology, jewellery, housewares – literally anything. eCommerce is often conducted via online websites such as Amazon or eBay. However, there are many smaller eCommerce sites too.

It is also possible to build an app for your eCommerce store. An eCommerce app builder can get you started, even if you have little or no coding experience. Having your own unique branded app can give you an advantage over the competition, so you may want to build an eCommerce app.

What Is Dropshipping?

To clear up any confusion, dropshipping is not an alternative to eCommerce. It’s an alternative eCommerce business model.

So how does dropshipping work?

An online store that uses dropshipping partners with an order fulfilment vendor, also known as a dropshipper. The drop shipper is the one who moans the inventory, while the online store owns no inventory.

When an order is placed with the eCommerce store, they place an order with their drop shipper. The drop shipper picks up the order from their fulfilment centre, packs it, and ships it to the customer on behalf of the eCommerce store.

Benefits of Dropshipping

The benefits of dropshipping include not having to store your own inventory, or even have your own inventory in stock when you begin your online store. You only have to find the right vendor to work with. The initial start-up costs are also much lower than in a traditional eCommerce model.

How can you succeed at dropshipping?

Here are a few tips:

• Choose high-margin products
• Order product samples from your drop shipper
• Conduct quality control
• Upsell and cross-sell
• Be ready to pivot if needed

If you are new to eCommerce, want to minimize your startups, and want to start your business right away, a dropshipping model may be for you.

However, if you want to sell your own branded products, desire complete control over order fulfilment, and have adequate capital, a traditional eCommerce model is the better solution.

Find More Information in Our Dropshipping Guide

While this article will get you started, there is a lot to think about when it comes to eCommerce and dropshipping. Setting up a business may be easier than ever, but successfully running a business is still difficult.

However, you can get an advantage over other online stores by having your own app. Building a scalable app is easier than you think. Even if you get stuck, our Builder.ai experts can help you with your app.

For more information and a greater breakdown of eCommerce and dropshipping, check out our dropshipping guide.