Hello! You may have been thinking of going into e-commerce and have been considering either Dropshipping or Mini Importation. Today, I bring to you an extensive comparison between Dropshipping and Mini Importation; what they entail, their merits and demerits, and what might make one preferred to the other.
Before I look at the differences between Dropshipping and Mini Importation, let me first of all explain what each of these businesses are and proceed from there to what bind the two businesses together.
So, first of all,
What is Dropshipping?
Dropshipping is a commercial venture in which, a trader sells their goods, without having to own any goods. All that are needed are an online page, which contains the images of the goods, and prices; a supplying company and an interested buyer. The supplying company does the supply of the goods to the customer, through the customer’s shipment information. The person involved in the Dropshipping business acts as an intermediate between the seller and the buyer. This actually saves the stress of setting up an on-site business venture, which could entail, renting a shop, having to pay bills.
Then, on the other hand,
What is Mini Importation?
A mini importation business basically entails the purchase of goods from a foreign country (import) for the purpose of selling the product at a profitable price. What usually should draw people towards mini importation is the possibility of getting goods at prices way cheaper than we have them at the local market, without having to spend so much in the business. Like the name implies, “mini” importation, the business could be started with not so much funds, unlike major importation business ventures.
Dropshipping and Mini Importation: Which is better
The Similarities between Dropshipping or Mini Importation Business
(1) Both Have Similar Payment Methods
Because of the advent of Fintech companies all over the world, making payments online has become much easier today than ever. Today, one can pay for goods and services from any part of the globe with just a laptop/mobile phone and internet connection.
Sellers differ from one another in their preferred payment media. Some request customers to use Mastercard or Visa card, others request for Alipay, while others prefer to be paid with PayPal. It differs from company to company. Irrespective of the payment mode, the central payment system for Dropshipping and Mini Importation is traditionally via the internet (i.e., online) using digital payment systems.
(2) Both Support Refunds
Whether in Dropshipping or Mini Importation business, there are opportunities to get a refund of your payments, should you receive damaged goods on delivery.
(3) Both have Similar Product Delivery Methods
Basically, whether it is Dropshipping or Mini Importation business, products are delivered either through Courier or Free shipping options. Using the free shipping option, there are no costs involved for the buyer, but it takes a longer time (i.e., between three to four weeks) before the products arrive the buyer’s destination. The other option is through International/Local Courier outfits such as FedEx and DHL. This method requires some payments, but delivery is faster here (within 3 to 5 working days) than it is with Free shipping.
Both delivery methods are used for either Dropshipping or Mini Importation.
(4) Both Have Similar Marketing Demands
Dropshipping and Mini Importation businesses actually thrive based on the seller’s ability to advertise his/her goods to prospective buyers. As a mini-importer or drop-shipper, you can advertise your business either via word of mouth to individuals or through social media platforms like Facebook, Instagram. Another option is to advertise your goods on online retail stores to prospective buyers who might be interested to buy your products. The deal is pretty much the same for both Dropshipping and Mini Importation business.
(5) Both Involve the Need for a Reliable Supplier
In going into any of these businesses, there is the risk of importing low quality goods, or product quantities that are much less than bargained/ordered/paid for. This can be avoided, for instance, by reading user reviews of those (past buyers) who have done business with the seller earlier. For your safety, go with sellers with up to 80% customer satisfaction reviews.
(6) Both Businesses Involve Online Sourcing for Goods
Finally, both Mini Importation and Dropshipping involve getting the right sellers to trade with. As China sits at the top of manufacturing all over the world, most of these businesses have to deal with Chinese companies. When you visit selling/merchandize sites such as Aliexpress and DHgate, you could get the right sellers to deal with, especially with companies who conduct screening processes for their buyers.
(7) Both Businesses are Profitable
On either side, both Mini Importation and Dropshipping venture is profitable. There are investors who have made huge profits from Mini importation; and there are those who have made huge profits from Dropshipping. Nevertheless, one should still be preferable to the other, right? Let’s see.
Let me now discuss Dropshipping vs Mini Importation Business: the Pros and Cons
A Sneak-peek into Dropshipping Business: Setup, Pricing, Features.
Dropshipping Business can be carried out on various platforms such as AliExpress, Shopify, Amazon, eBay, etc. Two major platforms for droshipping are Shopify and AliDropship plugin. Shopify is a custom subscription based Content Management System (CMS) for ecommerce of which Dropshipping is one. Of all the platforms available for the business, AliExpress is the most used. Goods on AliExpress come at an incredibly low rate. Perhaps, this accounts for its large amount of users. Much of the analysis done in this section will be at a bias towards AliExpress,
Dropshipping business on AliExpress has been made much easier due to their introduction of AliDropship Plugin. AliDropship Plugin is the plugin peculiar WordPress to sites to aid in creating online stores for the dropshipping of goods on AliExpress. In the following lines, I look at what these entail and in the process, I invite you to observe the pros/cons.
Shopify has large features and requires its users to subscribe monthly whereas, AliDropship requires only a one-off payment which can be used without paying extra fees except, of course, for addons (to get additional features with the plugin). Getting these “addons” is entirely optional and up to the user to decide.
Pros of Dropshipping
- Dropshipping involves little cost to begin.
- As earlier said, Dropshipping saves one the stress of owning a physical store or warehouse.
- Dropshipping does not bear with it inventory handling and other financial costs
- With proper and effective marketing, there is prospect of making huge profits from this business.
Cons of Dropshipping
- In Dropshipping, you don’t get to see the product and check/attest to the quality whether good or bad.
- Dropshipping might also bear with it hidden charges, though not necessarily high.
What Can We Say About Mini Importation Business Then?
Well, mini-importation business, compared to dropshipping business, involves quite a deal of input such as goods’ inventory, shipping, delivery and then products’ promotion. Goods are gotten through online merchant websites such as Alibaba and 1688.
The goods are then imported from the selling company to an agent, usually based in China. If you choose the courier services, and depending on your agreement/arrangement and delivery time preference with them, your products should be delivered in about 1 week. However, if you use a cargo, it could take up to three weeks before delivery to the agent. The agent then processes the goods onto you through your shipping information, name, and phone number.
Depending on the situation, you may have to speak with your prospective seller and bargain the prices, concurrently with the quantity you intend to import. Upon reaching an agreement, you could then go on to make your payments using online payments platforms like PayPal, Alipay, Debit/Credit cards, etc.
Please note that mini importation business is only realizable in Nigeria via an agent.
Pros of Mini Importation Business
- You get to see the products you want to trade.
- You can repackage your products before sale.
Cons of Mini Importation Business
- You have to through the stress of monitoring the shipping procedure/process.
- It entails inventory management costs, e.g. office space, etc.
- It could involve a little or high cost to start up. If you want to make good money in the business, you have to come in with a relatively large capital. You might not have this at the start and this could affect your profit margins.
So, which is better of the two?
We, that’s not for me to answer, but you. I have highlighted what each of both businesses generally entails. So, it’s up to you to look at them again and make the decision yourself. I’ll see you at coffee. Bye!
