Why Is Selling Digital Products Better Than Dropshipping?


The advantages of all Startup Stores vs Dropshipping

What is dropshipping? 

Dropshipping itself is a retail fulfilment method whereby you don’t have to keep any stock. Instead, you use a third party to make and handle all stock, the product’s quality and they will also ship a product of theirs you sell directly to your customer when you make a sale from your own Weebly store. You essentially re-sell a product without handling the product directly. The e-commerce store owner would make a sale, purchase the order elsewhere (usually Ali-Express based in China) and the factory sends it anywhere in the world. The ecommerce owner would keep the profits, minus marketing, product and running costs. 

What is the difference between dropshipping and your digital products stores?

The difference between a dropshipping store and 1PEZ Design a Website stores is that all of our products are digital products, meaning that they have many advantages over the dropshipping market. The main advantages that you should be made aware of are here:

1. No need to fulfil orders selling digital products

When you make any sales on your dropshipping business, you will need to process the order with your third party manufacturer every time you make a sale. But with our stores, you don’t need to fulfil any order when making a sale. The product will be 100% automatically sent to your customer and they just need to download it to their device – instant gratification!

2. No Inventory to manage unlike dropshipping

With digital products, you’ll never run out of stock whereas dropshipping stock does. Can you imagine if your third party has missed updating the inventory? It could be a real problem when it comes to the order that you have already taken payment for! This will never happen with digital products, such as the ebooks to sell, included with our stores. 

3. No delivery or fulfilment with selling digital products

Digital products don’t need any delivery as the buyer just simply downloads it through the link that you provide for them, this is done automatically with all 1PEZ Design a Website stores and it means it is a hassle free form of delivery, without cost and makes the buyer satisfied as they are not having to wait a long time for the products to arrive – it is all automatic and instant. 

4. No refunds for damaged products with selling digital products

The worst thing to happen with dropshipping is when there is damage to a customer’s product which is caused during the delivery process. Another common complaint is the lack of quality control from the third party and the customer will complain and merit a refund (doubly so if they have had to wait 30 days to receive it from China in the first place). Digital products don’t get damaged nor take a long time to arrive. 

5. No product tracking or related customer service issues, saving time and money.

With digital products, there are no hassles coming from the customer asking “Why hasn’t my product arrived yet?”. You don’t need to track anything across the world nor deal with international borders or taxes. Digital products are instantly sent to anyone with an internet connection anywhere in the world. 

6. No generic Ali-Express copy and paste product photos and product descriptions 

Let’s put ourselves in the shoes of a customer: How would you feel if you see a poorly written product description which has been copied and pasted from Ali-Express? You would think that this seller isn’t enthusiastic about what they are selling, probably doesn’t even know what they are selling and you’d probably think it is a scam, right? With our stores, we put effort into constructing websites around stories and flow to encourage the customer to read on. We provide short or long product descriptions to aid the potential buyer with relevant information, whilst building rapport at the same time. Product descriptions sell!

7 .Selling our digital products online isn’t a saturated market vs popular dropshipping products 

The competition for selling products on 1PEZ Design a Website stores is far less than the competition of those selling popular products from a third party dropshipping supplier such as on Ali-Express. We find that entrepreneurs who buy our 1PEZ Design a Website stores do so with specific digital marketing skills in mind. This means that there are rarely two 1PEZ Design a Website stores using the exact digital marketing strategies. You may find that because of the competition of selling popular dropshipping products that there would be many other digital marketers using the same tactics for the same products, increasing the competition to sell the same items. 

8. Higher average profit margins, 100% per sale

Our digital products stores allow you to put in a one-time investment into a website with a product(s) to sell, and you can sell said product hundreds, if not thousands of times. Each time you do after purchasing the store, you can keep all profits from the sale. This is far better than drop shipping as you’d need to spend the majority of your revenue on paying for stock. With digital products, you have all 100% of the product’s revenue to dive into with your marketing costs in order to make a profitable sale. This makes selling digital products more flexible in marketing changes and more versatile vs dropshipping products, which can have between 50% – 2% profit margins depending on a product’s competitiveness. 

All 1PEZ Design a Website stores come with digital products

As we’ve explored, dropshipping isn’t a perfect stress-free way to build a successful online business. We know that hard work is always required to start any business but we believe that our 1PEZ Design a Website stores are more efficient to manage than a dropshipping store giving you an advantage to increase your success in online ecommerce.