The E-Commerce sector in India has recorded a steady growth since the last decade. In fact, the Indian E-Commerce industry is predicted to transcend the US with a catapulting progress by being the 2nd largest E-Commerce market in the world by 2034.
Considering the plenteousness of choices among contrasting business models, you are most likely to get perplexed in the industry jargon. In order to catch the differences, Vendorboat will help you to comprehend the three juxtaposing business models which are Print on Demand, Dropshipping and Warehousing & Fulfillment and find out which one is the better business model.
In the true sense of the term, products are customized or printed as per the designs of the customer as soon as the order strikes in. Print on Demand is also known as On Demand Printing. Under this format no stock inventory is required as printing is done only after ordering.
To read more elaborately about Print on Demand business model, read this blog on Vendorboat.
The Drop shipping E-Commerce model allows a store to avoid the stocking of products. Instead, the products are purchased from a third party supplier and then shipped directly to the customer. Thus, a physical inventory is not at all needed.
If you want to start a Drop Shipping business of your own on Vendorboat, click here.
Under the Warehousing and Fulfillment business format, you get to store a stock of your products at your own warehouse or at the warehouse of your partner from where the orders are shipped to your end-customers. It is often referred to as third-party logistics or 3PL.
If you are willing to launch a start-up in the field of E-Commerce, Print on Demand and Dropshipping would be the ideal models to kick off with. You will be devoid of any surfeit of inventory. Although, there is a little less profit margin in Print on Demand, but you can steer clear of any big losses. Under Drop Shipping, you will be able to set your own profit margin by efficiently handling your brand and also the investments are low. Both Print on Demand and Dropshipping are somewhat similar models.
In case you are a well-established firm and keep on receiving a great deal of orders from your customers then Warehousing and Fulfillment services would prove to be very beneficial for you. You can spare a lot of valuable time to your business plans other than packaging and shipping.
Given the pros and cons of all the models, it narrows down to your business mindset. Make sure to do a proper research work to find which one among Print on Demand, Dropshipping and Warehousing and Fulfillment, works the best for you. Do not forget to visit our website for more such E-Commerce content.