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Idea Overview:
I would like to develop an e-commerce activity of dropshipping. I came across it when looking for a business idea with simple management that may generate a healthy profit level. I was attracted to dropshipping because it allows selling products without managing, storing or shipping inventory. This business idea is fantastic since it breaks the geographical boundaries, and it would enable me to operate on a global scale.
It works by finding an online supplier, then selecting some of their products to resell on my own website, then adding a markup on the pricing on my website and advertising. Starting this activity in the UK is more attractive after Brexit because it will no longer be subject to most European trade regulations.
I will receive the direct payments and forward the order to the supplier, who will ship the goods straight to the client.
Who might use it/where it might be used?:
The concept of the business gives the possibility to contact any client from any point of the globe. The great thing is that there is no need to limit oneself to a single customer segment and there is no need to build and keep a stock of goods. I have decided to start with gadgets and items that can be proposed as gifts.
The Market (B2B, B2C or Both):
Both
Sector the idea belongs to:
Retail
Why you think there is a demand for your idea?:
Dropshipping has maintained its position as one of the industry's hottest topics. Google Trends provides a way to see how the word "dropshipping" has performed in terms of people's interest, and it shows a huge increase over the last five years.
It is one of the most significant e-commerce business ideas, with the potential to generate high home-based profits for people all over the world.
Who would be the ideal customers?:
This is a business-to-consumer commerce (B2C), but it could work as well as a B2B, for the small shops.
Considering the nature of the goods commercialised, as gadgets and items that can be offered as gifts, there are multi-segments targeted with the following characteristics: Generation Z and Millenials, more used to the online shopping (mobile shopping), with low- medium income.
What ideas do you have to reach these customers?:
I think the potential customers would be approachable through the Instagram, Facebook and Tik Tok platforms and/or the Google Ads.
How far have you developed this idea?:
The idea is still in its initial stage; I have started a short-term trial on Shopify with the online store to see how it works, I have launched a Facebook page with an online store, and I have created several accounts, including on eBay, because i wanted to try also the traditional way of buying inventory and reselling it.
What – if any – feedback have you had for this idea so far?:
I have exchanged views with friends, who have also expressed an interest in the activity.
What supporting material – if any - would you like to add to your proposal?:
Mobile shopping is growing, according to Statista (2019). Estimates were made that 73 % of e-commerce will take place on a mobile device, by the end of 2021. Furthermore, there are various online forums where market managers confirm the efficacy of dropshipping (Quora, 2021).