What’s the Difference Between the Doba, Worldwide Brands and SaleHoo?
If you’re involved with e-commerce or plan to be in the future, learning about these drop shipping companies will be beneficial for you in the long run. You may need to hire one of the world’s best drop shipping companies such as Doba, WorldWideBrands or SaleHoo, in order to get product inventory.
Let’s look at three companies which provide dropshipping services.
Learn About Doba
This company was launched back in 2002 and it’s a Utah-based enterprise. Doba links eCommerce entrepreneurs with suppliers of drop shipping services all around the globe. Doba features a platform which is easy for entrepreneurs to use. It allows for "one-stop shopping", by giving new website owners the ability to start eCommerce shops quickly and efficiently. Doba gives entrepreneurs instant access to tons of products which they may sell. Now, let’s look at the best and worst things about Doba.
First, let’s look at the positives. We love the fact that Doba has an interface which is very simple to use and understand. Also, we appreciate the educational tools which are available at the platform. They are free to use and they are great resources. When you visit the Doba website, you’ll be able to check out electronic books, infographics and blogs. These resources will give you the inside scoop on supply chain management and electronic commerce in general.
Now, for the downside…
You’ll need to become a member in order to access drop shipping services via Doba and Doba isn’t the cheapest option for drop shipping. Most entrepreneurs pay between twenty-nine and two hundred and forty-nine bucks a month in order to be members and utilize services.
Since the prices of products are also on the high side, Doba members may find it challenging to compete against the biggest online retailers. Amazon is just one example of a competitor which crushes a lot of smaller e-commerce websites. eBay is another example! Also, based on our comprehensive research, customer service at Doba is a bit hit and miss.
Now, let’s discuss some hard facts about Worldwide Brands…
Is Worldwide Brands Right for You? This company got its start in 1999 and it’s a platform which allows e-commerce entrepreneurs to buy from manufacturers and wholesalers. Worldwide Brands is a bit different in that it is focused on giving entrepreneurs access to products of higher quality. It’s about the higher price point in various retail niches. Since products are higher-end, membership and products cost more, too! If you want a lot of variety for your online clients and you want good customer support, too, then you may find that Worldwide Brands is a smart choice.
In terms of advantages, this company offers a big directory and all distributors and sellers that they company uses are certified by Worldwide Brands. They vet their partners carefully in order to protect e-commerce entrepreneurs just like you. While you may expect to pay just under three hundred dollars for membership, the membership is of the lifetime variety. This is good if you become successful selling online. You won’t need to keep paying in order to maintain your membership and this means more profits for you!
Now, let’s look at the trouble spots. First, the cost of membership is high. It’s actually higher than most of its chief rivals in the wholesale/drop shipping niche. If you aren’t hustling to find new customers, you may find that getting a good return on your investment is an uphill climb. As well, you may need to pay extra for additional services that Worldwide Brands offers. Some of these services are not included in the cost of membership.
This platform is better for the intermediate or seasoned entrepreneurs. It may not be right for the first-timer. A newbie will probably need more support from a platform in order to launch and grow an e-commerce enterprise.
Learn about New Zealand’s SaleHoo
This platform is fairly affordable and its subscription range in price from twenty-seven to ninety-seven bucks a month, based on 2016 figures. Also, the suppliers and items features at SaleHoo are vetted by analysts who are SaleHoo staff members. As well, the platform features a money-back guarantee of sixty days. This guarantee gives entrepreneurs confidence!
The downside of SaleHoo is that its resources for educating customers are somewhat limited. SaleHoo doesn’t have the best strategy for content marketing and its platform doesn’t have a wide assortment of tools. Also, the prices of some products are pretty high and this means that entrepreneurs will have trouble selling them for a profit online, when the people who surf the Web to shop are able to get them for less from the world’s biggest online retailers.
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Another option is choosing wholesaling over dropshipping.
Today, we want to help you achieve your business goals by sharing information about the differences between the three best drop shipping companies. Also, we’ll talk about the differences between drop shipping and wholesaling. Our goal is to educate you so that you are able to make wise and informed choices. We want to get the ball rolling by talking about drop shopping versus wholesale.
So, which should you choose? Drop Shipping or Wholesale?
These forms of management of supply chains assist e-commerce entrepreneurs with fulfilling orders. They help entrepreneurs to get products to end-users. If you’re running a business where you don’t make products yourself (or planning to run this type of e-commerce enterprise), one of these management supply chains may be ideal for your needs.
Purchasing wholesale is about buying an inventory of products at a discount price, right from the manufacturer. When you buy for this lower-than- average rate, you may then sell the products at your virtual storefront, for prices set by the manufacturer of the products, and then profit from their sale. If you’re new to the competitive world of electronic commerce, you may find that wholesale is the most logical choice, due to its simplicity.
The products that you want to sell are already being produced. You’ll choose your preferred types and quantities of products and then handle the tasks of fulfilling orders (including shipping out products to buyers) on your own.
However, there are drawbacks to be aware of. For example, e-commerce website owners who choose wholesaling won’t have the power to set prices. Prices will be set by the wholesaler/manufacturer. As well, if you wish to sell an array of products from a host of manufacturers, you’ll need to work with a lot of different manufacturers. This makes organization a bit more of a challenge!
Also, when you buy wholesale, you’ll need a safe place to store it before it’s sold. If you plan to have a large inventory, and you don’t have space available which is free to use, the cost of safe storage will boost your operating budget.
Now, let’s talk about dropshipping!
With dropshipping, products are sold to clients and there is no inventory. A dropshipping company will take care of the orders from customers and ship their products out to their addresses or post office boxes. An e-commerce entrepreneur will make money by charging more for the products than the drop shipping company will charge for the services that it provides.
With this business model, an e-commerce entrepreneur won’t need to buy an inventory, and this means that less capital will be required in order to get a business up and running. The entrepreneur will buy the product that the customer orders. It’s a more streamlined approach. It minimizes the threat of money loss due to inventory which just doesn’t get purchased by customers.
At first glance, drop shipping seems like the right choice. It’s easy, because no storage space is required and it’s also a good way to avoid big start-up costs. Also, it’s less work. The drop shipping company handles the nuts and bolts of order fulfillment, so the e-commerce entrepreneur doesn’t have to. However, no system is perfect and this true of drop shipping as well!
The key disadvantage of dropshipping is that profit margins for entrepreneurs will be lower when they choose it over wholesaling. The reason why profit margins will go down is because the dropshipping company will be handling order fulfillment and will charge for the service that it provides.
Expect a profit margin of around twenty percent when you go for dropshipping. If you choose dropshipping, you’ll benefit from offering an array of products at your website, rather than just a few. Diversity of inventory will assist you with avoiding another risk of drop shipping, which is not selling enough items to make a profit which compensates for low margins.
Which Company is Right for You?
Now that you know the facts, you’ll be able to find a drop shipping/wholesale platforms which is suited to your needs and budget.