What’s The Difference Between DropShipping And Mini Importation?

Delivering a customer’s merchandise at the right time is very imperative if you want to have a famous stand in the online business platform or a physical market. However, you may start thinking of which is which — if it is best to engage in dropshipping or min importation. You keep asking yourself: Are they not the same? Why do people use these expressions differently? This article will address those questions, and knowing which to use in the niche you are will help you understand your customers and know how to communicate with them in terms of business.

What is dropshipping and what is involved before you can stand out among so many others? Dropshipping gained grounds in 2006 when AliExpress which became very popular in the United States introduced Chinese e-commerce stores. But by then, many individuals didn’t know what exactly that served, not until many a person who later understood it was willing to take the risks of dealing with AliExpress since it was a cheap means to ship products to different customers who needed them. And today, virtually everybody, especially an entrepreneur, who wants to make money using online legitimacy is considering using dropshipping as a means.

The term Dropshipping is employed to talk about a method used in a supply chain wherein the retailer doesn’t have to keep goods in stock but has to transfer the customer’s orders and shipment details to a wholesaler, or directly to the manufacturer. The third party supplier then ships the products to the customer.

If you are an honest merchant, you are liable to gain more grounds and will be able to reap the lion’s share out of the business, even though you are the middle man. Dropshipping is a cool business and one that can be very rewarding because it doesn’t involve the normal traditional business model rules. In dropshipping, you can absolutely build a sustainable business right from your home via your laptop without walking through so many hassles.

Basically, in dropshipping three people are involved: the retailer, the customer, and usually the manufacturer. The customer orders the goods, the retailer sends the orders and shipment details to the manufacturer. The manufacturer finally gets the goods or products shipped to the customer. This is where the retailer (dropshipper) gets the profit — by selling the product for a higher price.

Being a dropshipper is easier because you don’t have to think of how to get the money to establish a warehouse for the products, and/or packaging and shipping your orders.

On the other hand, is it worth the effort to engage in mini importation? A critical look at this will help you understand which one you consider best for your level and thus, is the ideal business strategy for you. 

Mini importation business or simply mini importation, as the expression connotes, is a business which involves the buying of goods directly from manufacturers from overseas and resell them at higher prices. Basically, mini importation is a business that involves buying and selling of products.

What Makes Dropshipping Different from Mini Importation?

Granted, no successful business is free to start, and that is the case with dropshipping. However, while engaging in mini importation involves putting so many things into consideration, it is not the case with dropshipping. In mini importation, you definitely need more capital, unlike dropshipping, and a warehouse where your products (always in bulks) need to be stored. Notwithstanding that, you buy your products in bulks at very cheap prices and are able to sell them in your home country at higher rates.

In dropshipping, you don’t have control over the quality of goods received because you serve as a middle man. And if it happens that faulty products are shipped to your customers, it could lead to business distrust and bad reviews about your products. But scrutinizing the quality of your products in mini importation is very possible. This helps you know the products that should be sent out for customers to buy.

Another thing to consider between dropshipping and mini importation is the cost of packaging and shipping. While in dropshipping, shipping the products to the door of the customer is free, it is not the same with mini importation — you definitely have to be responsible for both the packaging and shipping of your goods to your home country.

Even though dropshipping is an ideal side job for entrepreneurs, they may get fired from their main job if not carefully handled. But in mini importation, it is a business that you own and so you do not need to be employed by anyone. This helps you have control over your products and more time for seller-buyer communication because you are not forced by anyone to engage in the 9 to 5 job.

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