“We are here to kickstart your ecommerce ambitions by providing you with a range of ecommerce stores in the most popular niches whilst providing you with a fully functioning business complete with products to sell saving you time, money and effort in the process."
“We are here to kickstart your ecommerce ambitions by providing you with a range of ecommerce stores in the most popular niches whilst providing you with a fully functioning business complete with products to sell saving you time, money and effort in the process."
Selling digital products has many advantages vs selling drop shipping products.
You too can benefit from borderless commerce, zero stock to manage, 100% automatic order fulfilment and negligible customer contact. Listen to this episode of the Startup Streams Serial Entrepreneurship Podcast to find out how...
Podcast transcript
I have an interesting one for you today… I would like to put the point forward that selling digital products online is far superior than drop shipping. Let’s find out why in this episode of the Serial Entrepreneur Podcast…
First of all, what is drop shipping?
Drop shipping is a clever retail fulfilment method whereby you can sell physical goods which you don’t yet own. A customer basically pre-orders an item (usually without knowing they are pre-ordering, thinking you have the stock) and you make the order with a supplier on order in a country like China where the goods are made. The manufacturer then packs and ships the order to your customer on your behalf.
It’s a bit like someone paying you $10 to buy an item from the corner shop, you going down there to buy it for $8 and you keep the $2 profit. Only drop shipping is on a much grander scale.
What is the difference between drop shipping and a digital product stores?
A digital products based store means that that all products are digital files, so there isn’t anything physical to ship, you don’t need to make pre-orders and the other advantages are abundant.
The main advantages that you should be made aware of is that …
There is no need to fulfil orders selling digital products
When you make any sales with your dropshipping business, you will need to process the order with your third party manufacturer every time you make a sale.
With all Startup Streams pre-made businesses for sale, all included products for you to sell are digital so you don’t need to fulfil any order when making a sale. The order fulfilment is 100% automatic, so your customer just needs to download it to their device - that is called ‘instant gratification’ and results in happy customers, meaning they are likely to refer you to their friends and network.
What’s more, there is 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. You will have infinite copies of each ebook to sell.
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Next, there are no time consuming refunds for damaged products to manage with selling digital products
The worst thing to happen with drop shipping is when a customer's product is damaged during the delivery process. Another common complaint is the lack of quality control from the third party manufacturer 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 which can often happen). Digital products don’t get damaged, nor take any time to arrive. Super easy.
There isn’t any product tracking or related customer service issues, saving time and therefore 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 any shipment 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 with the click of a button.
Selling digital products online isn’t as saturated as popular drop shipping is
The competition for selling products on Startup Streams 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 Startup Streams stores do so with specific digital marketing skills in mind. This means that there are rarely two Startup Streams 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.
There are higher average profit margins: Up to 100% profit per sale
Digital product stores allow you to put in a one-time investment into buying or making a website with products to sell, and you can sell said product hundreds, if not thousands of times. Each time you do, you can keep all profits from the sale. This is far better than with drop shipping as you’d need to spend 50 to 98% 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 for marketing and more versatile vs dropshipping products, which can have between 50% - 2% profit margins depending on a product's competitiveness.
Selling digital products is perfect for the serial entrepreneur
Being an entrepreneur is tough. Being a serial entrepreneur is tougher. The amount of sales, customer queries, emails to answer, returns, marketing campaigns and all other matters increase exponentially with each additional business added to your portfolio. With digital stores, the only real time addition to your busy seclude would be marketing. However, if you have an existing processes in place, it would be very easy to plug any new digital products store into your current ecosystem. Certainly at Startup Streams, we have greatly decreased the amount of customer relations you would need to manage with our digital product businesses for sale.
Let’s summarise.
There are numerous advantages for selling digital products vs drop shipping products.
As we’ve explored, drop shipping 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 a digital product store is far more efficient to manage than a drop shipping store giving you an advantage to increase your success in online commerce…
Remember, you too can benefit from borderless commerce, zero stock to manage, 100% automatic order fulfilment and negligible customer contact.
Buy a digital product store today...
If you don’t have a digital product store yet, head over to StartupStreams.com right now where you can discover and buy and of the dozens of pre-made businesses for sale today and start taking advantage of selling digital products right now…
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