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If You Want To Invest In Dropshipping Trends, Here Are 3 Stocks For You

These companies are directly involved in dropshipping.

Ben Scheer
Nov 6, 2020 · 4 min read

Dropshipping as a means for doing business has come to be a fairly hot topic for the past couple of years. Whether you’re searching around on Youtube or TikTok, it’s not difficult to find influencers who rave about the benefits as well as the myths of dropshipping.

This article will touch on what has made dropshipping such a trend as well as 3 stocks that are tied to that trend. Read on to dive in!

What’s Dropshipping All About?

If you have a product that you want to sell and make a profit, what do you do? One way to do it is to keep the product in your home and wait for a buyer to tell you they want to buy from you.

That buyer might find you through a post you made online or your website, for example. At that point, you package the product yourself, get a shipping label on it, and bring it over to the nearest USPS store to send the product to your customer.

However, there are a lot of people who don’t want their home to be piled with products waiting to be sold and boxes waiting to be shipped. What if you didn’t have to deal with any of the inventory and could just focus on the marketing?

Dropshipping allows for just that. In the dropshipping model, the seller finds a product being sold by another supplier listed online. The seller creates their own website, lists that supplier’s product on their site, and then runs advertisements.

If someone visits the website and buys the product, the seller will be notified that an order needs to be fulfilled. At that point, the seller will give the supplier the information they need and pay them, and the supplier will handle getting the product to the customer.

Since the supplier handles inventory and shipping instead of the seller, the seller can focus solely on other aspects of the business, especially marketing. Also, in many cases, you only need to order one product at a time from the supplier, which means there is low upfront cost involved in dropshipping.

That means to run a dropshipping business, all you need is a laptop and, in most cases, a credit or debit card. The majority of funds are usually directed towards running ads to drive traffic to the product website. Dropshipping businesses are virtual by nature, so they can be run anywhere with the internet. A person can run a dropshipping business 24/7 if that’s what they want.

There is some setup involved, including finding products and suppliers to use and creating a website to sell products on. There is also the requirement to come up with creative and run advertisements on social media platforms. For all of these reasons and more, dropshipping trends are most popular amongst younger folks.

Stocks To Consider

Alibaba is a Chinese-based technology company specializing in e-commerce. Specifically, they have an enormous database of searchable suppliers online. Their website can be used to source suppliers that are normally located in China and can provide products wholesale as well as fulfill orders for dropshipping. An Alibaba user can message suppliers and gain relationships that aid in business.

Alibaba is often closely thought to be in the same realm as Aliexpress, a totally different website that also offers a database of suppliers. Given this close association with dropshipping, the company is of interest to many investors who buy into the rising popularity of dropshipping and e-commerce in general.

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BABA 1 year performance, powered by EEON

Shopify is a Canada-based e-commerce platform for online stores and retail point-of-sale systems. It’s an incredible popular way for dropshippers to create their product websites for several reasons. Amongst those reasons, websites can be created quite easily using templates and no code.

Also, Shopify offers a store of apps that you can plug into site. Oberlo, one of the most popular plug-ins, allows you to easily integrate Aliexpress products into your website and sell them. Many dropshippers are dependent on Shopify to do business.

Amazon, the well-known technology company based in the USA, also plays a role in the dropshipping culture. The company has business sectors in cloud computing, digital streaming, and much more, but it is most known for its e-commerce platform. On it, there are over 2.5 million sellers selling products.

For Amazon dropshipping, sellers can have products sent straight to an Amazon warehouse, and from there, Amazon takes care of shipping the product to its destination, returns, and more. Given that Amazon’s e-commerce market share is around 50%, the company will continue to be a popular choice for investors.

[Note: This article is not financial advice.]

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Ben Scheer

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Follow me for biz & tech nuggets.

The Innovation

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Ben Scheer

Written by

Follow me for biz & tech nuggets.

The Innovation

A place for a variety of stories from different backgrounds

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