Welcome to Money Beng, today we will talk about another business model that is very popular these days: dropshipping clothing.
For those who don’t know it yet, we will try to explain in a few paragraphs what dropshipping is and how it works, we will also explain the advantages and disadvantages, for those who already know the mechanisms that revolve around this world, then we recommend that you immediately go to the list of suppliers Italian clothing dropshipping by clicking on the item on the index below.
Dropshipping what is it
This term indicates a business model through which it is possible to sell a product to a customer without actually having it in one’s warehouse.
But how is it possible to sell a product that you don’t really own?
This question is answered by companies that carry out clothing dropshipping services on behalf of final retailers, therefore we have a B2B on one side and a B2C on the other.
In other words, we put a product online and when we sell it, the parent company will ship our product for us with our logo.
There are several advantages of dropshipping, many of which are also evident, but this model also has disadvantages which we will tell you about shortly.
Advantages of dropshipping clothing
We have already mentioned one of the main advantages of dropshipping, namely the absence of a warehouse to manage.
In fact, with dropshipping you will not have any need to own your own warehouse, avoiding the costs of storing the goods, renting the premises and many other problems that this entails.
Another advantage is that the dropshipping company does the shipping for you, so you don’t even have packages to pack, which allows your business to be done 100% online.
You can also choose from infinite products to upload to your e-commerce without any worries, because what you don’t sell won’t remain in the warehouse to get moldy and this allows you to understand what sells best and remove what doesn’t sell without problems, thus having a trendy e-commerce, always updated.
Disadvantages of dropshipping clothing
All that glitters is not gold and if it were that easy to make money we would all be rich already, don’t you think?
So now let’s see the negative part of this business model!
Firstly, the competitiveness is nowadays quite high while the dropshipping suppliers are always the same.
This means that you could put products online at the same price as your competitors if the parent company is the same.
The dropshipping company imposes a minimum selling price so you will have to put a price increase on the products, and very often we are talking about a few euros, when you will have competitors who work like you with the same company the margin to lower the price and selling the product online becomes little.
At this point it is clear that dropshipping marketing plays a key role in emerging from the competition and being able to sell more than the others.
A brand awareness campaign for your online store and customer loyalty becomes essential.
Furthermore, with dropshipping there is a low managerial autonomy, there are not many dropshipping clothing companies and each of which has its own rules for accessing this service.
In fact, many dropshipping companies also ask for an annual fee for the service or an entry fee of a few hundred euros.
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Dropshipping without VAT number
At this point it is clear that perhaps you too would like to start testing if it works and you may be wondering if you can try it without a VAT number. Respect is NO.
In Italy no commercial activity can be carried out without a VAT number, not even online, so if you too want to start with dropshipping you should first develop a business plan, then you should register for VAT and finally sell.
Unfortunately in Italy there is no ceiling on the limit of annual profits within which the VAT number is not necessary, i.e. a free tax area for the commercial sector, therefore from the outset one is forced to take on the burden of paying contributions and taxes.
Dropshipping how much you earn
As far as the potential earnings are concerned, dropshipping clothing represents an online entrepreneurial activity and as such there is no exact figure to answer this question.
There are dropshipping businesses worth hundreds of thousands of euros, others that barely make ends meet and still others that close before opening.
If you want to become an entrepreneur you have to get out of this logic of thought to try to emulate others, in fact what allows you to be successful in dropshipping or anything else in life is to move with your intelligence.
Here in this guide you have found an important starting point and you have had the opportunity to learn about a new business model that you may not have known about, now it is up to you and your intelligence to emerge.
Dropshipping tips and opinions
In our opinion, dropshipping is a business model that is already quite well known in our country despite having been introduced not so many years ago, so the competition is high.
However, we strongly believe that it is still possible to make money with dropshipping and to do so you need to find a low-competition niche, a product sector that is not yet much explored.
Having competitors is not a bad thing, it means that there is demand and therefore an offer, but if this becomes much higher than the demand then the risk of entering the market and failing becomes increasingly higher.
We are of the opinion that dropshipping is the solution for those who want to work 100% online, without facing the very high costs involved in opening a shop or warehouse management costs, but we must also consider that it is always an entrepreneurial activity , and only the best are able to obtain considerable profits.
List of Italian dropshipping clothing suppliers
- B2B Griffati
- Gruppo Tera
- Fashion & Luxury
- Italian Boutique
- Lingerie Mania
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Money Beng, The Editors
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