Beginner eCommerce entrepreneurs will encounter the phrase “drop surfing eCommerce” as they enter the industry. Drop surfing is a popular eCommerce technique some eCommerce entrepreneurs employ to generate profitable prospects, but it leaves many newer entrepreneurs wondering, “what is drop surfing eCommerce?”
This article will explain drop surfing eCommerce and how it differs from dropshipping. We will also explore the benefits of drop surfing and any risks to avoid when drop surfing.
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What Is Dropshipping?
Before delving into drop surfing, we will first discuss what dropshipping is to provide a foundation to distinguish dropshipping from drop surfing.
Dropshipping is a business model that allows eCommerce entrepreneurs to fulfill orders by relying on suppliers to maintain inventory and ship orders to customers. In this model, the eCommerce business never has to keep any stock on hand.
When a customer places an order in a store, the order is sent to a supplier by the store owner. The supplier processes the products ordered and ships them to the customer.
In this business model, the store owner is a middleman between the customer and the manufacturer or supplier.
The supplier is responsible for fulfilling this order by shipping the inventory they hold directly to the customer. Through this kind of order fulfillment, the eCommerce business is free from the financial and logistical burden of maintaining inventory.
The biggest strength of dropshipping is the ability of the eCommerce business to generate sales without having to physically hold any of the items being sold. This allows eCommerce retailers to sell a wide range of goods via online marketplaces without managing them all.
What Is Drop Surfing?
To recap, dropshipping is when an eCommerce business receives an order, forwards the order to a supplier, and the supplier ships the items in the order to the customer. This may cause beginner eCommerce entrepreneurs to wonder, “what is drop surfing eCommerce?”
Drop surfing is a dropshipping technique utilized by eCommerce entrepreneurs to increase profit and ride market trends.
When dropshipping, eCommerce entrepreneurs can consistently work with the same supplier to dropship multiple orders. Alternatively, entrepreneurs can research the costs suppliers charge for a product and select a supplier based on the lowest price offered. This action is known as drop surfing and allows the eCommerce entrepreneur to maximize their profit margin.
Example: drop surfing
For example, say you receive an order for a pair of shoes. You already work with a supplier for this item and can easily forward this order to them for fulfillment.
Before you send your supplier the order, you do some online research and find that the item is available for lower prices from other suppliers. Since different suppliers provide these shoes, so you send the order to a new supplier based on the lowest cost offered.
You select a new supplier because they provide the shoes for $5 less than your previous supplier charged. By sending the order to a new supplier that offers this product cheaper, you drop surfed your first order!
As you begin to drop surf other items, the value generated by using this technique adds up rapidly. For an eCommerce entrepreneur handling around 100 orders a month, this $5 savings generates $500 in value that month for the entrepreneur.
This value makes it clear why entrepreneurs are adopting drop surfing eCommerce methods for their business when deciding between drop surfing and dropshipping.
How Is Drop Surfing Ecommerce Like Trend Surfing?
You can compare drop surfing to “surfing” product trends in the eCommerce market.
Instead of searching for a supplier based on the lowest cost offered, you can search the market to see if there are any current product trends. If any particular products are trending online, you can seek to market and sell these specific items based on their popularity.
Like finding a perfect wave to surf, you will need to monitor the market to locate these product trends early before they peak and fade. Some trends may last longer, so it is essential to be vigilant and adapt quickly to new market trends.
What Is Drop Surfing vs. Dropshipping?
Now that we have learned what dropshipping and drop surfing eCommerce is, it is clear that there is no massive difference between the terms. In terms of drop surfing vs. drop shipping, drop surfing is a different form of dropshipping designed to make dropshipping more profitable for your eCommerce business.
Drop surfing is dropshipping, researching different suppliers or product trends, and riding those trends to maximize profit and generate increased sales! Whether exploring the lowest prices or trending products to create better business, you are actively drop surfing.
Determining if your eCommerce dropshipping business will adopt drop surfing is essential. If drop surfing is suitable for your business model, it can benefit your operations' value.
Although drop surfing has incredible profit potential, there are some risks to be aware of.
We will continue by reviewing the benefits and risks to drop surfing.
What Are Drop Surfing Ecommerce Benefits?
Drop surfing boasts a variety of benefits to the eCommerce entrepreneur rooted in the flexibility and adaptability of this type of dropshipping. These benefits are as follows:
- Low Start-Up Costs: Since you will not need to purchase or manage any inventory, you can begin your drop surfing eCommerce business quickly without requiring much funding. By relying on suppliers to ship your orders, you are free from the costs of maintaining inventory. By purchasing directly from suppliers, you also obtain the most competitive pricing in the market. Drop surfing Shopify is an excellent example of this, a subscription-based service that makes it easy to start an online store.
- Offer a Wide Range of Products: Another advantage of not actively managing inventory is that there are no restrictions on the type of product you can offer. You can provide any product on your eCommerce store, from clothing to accessories and much more.
- Create a Scalable Business: One of the most significant advantages of a drop surfing eCommerce business is that you can quickly scale up your operations. By actively researching suppliers offering the lowest costs, you create new relationships with each supplier you connect with. Adding new suppliers to your business allows you to select from a wide variety of partners, enabling you to sell more products at better prices to consumers.
- Generating Greater Sales: By drop surfing trending products, you will have a much easier time generating sales. As products become popular, consumers will look to your business first to purchase these products. However, developing more significant sales will require you to vigilantly monitor the market for new trends.
What Are Drop Surfing Risks?
When comparing drop surfing vs. drop shipping, note that drop surfing can generate substantial profit for your eCommerce business, but be aware of the following risks:
- Complicated Order Delivery: Suppliers may provide other delivery options when working with different suppliers to fulfill your orders. Monitoring and tracking your orders could become convoluted. To avoid confusion, ensure you know the kind of delivery service a supplier provides before requesting order fulfillment.
- Limited Knowledge of Supplier: You create a trusting relationship when you, as an eCommerce entrepreneur, work consistently with the same supplier to fulfill your orders. When working with new suppliers, you may not know them well, such as if they have a poor history of fulfilling orders or making payment mistakes. These mistakes can cause the customer to look poorly upon your business since they purchased the product from your eCommerce store. To avoid damaging your reputation, research a supplier's background before forming a dropshipping agreement.
- Limited Knowledge of Product: As you research trending products in the market for drop surfing eCommerce, you can come across products you have not sold before. When selling these products, ensure they are reliable, in-stock, and legally permitted to be dropshipped.
For eCommerce entrepreneurs determined to build their business, drop surfing eCommerce is an invaluable tool to do so!
Drop surfing eCommerce maximizes your profit and builds your eCommerce business. By researching the lowest cost suppliers or product trends in the market, you can cut costs, increase profit margins, and generate higher sales.
If you decide to drop surf, mitigate potential risks by thoroughly researching new suppliers and products.