Ecommerce vs. Dropshipping: Which is the best option in 2025 for your online business?
3 min read
Index:
1º What is eCommerce and Dropshipping?
2º Differences
3º Advantages and disadvantages
4º When to opt for dropshipping?
Shopping online 15 or 20 years ago was like a "utopia", until nowadays it has become a totally normal and everyday action. Moreover, you only have to take a walk and take a simple look at the stores to see the evidence: there are fewer and fewer physical stores or stores.
Evidently this is because online commerce is becoming increasingly popular, and in 2025 it will be no less so. In this 2024, e-commerce has already made record turnover, and the trend will be more and more.
In digital commerce, there are two terms that tend to dominate conversations: ecommerce and dropshipping. Both are related to selling products online, although they are two completely different business models. Each of them has its advantages, its challenges, and its peculiarities. If you want to know a little more about online commerce, we recommend you to read this blog to understand the differences between ecommerce and dropshipping, and take a strategy that best suits your goals.
Today we are going to talk about the differences between ecommerce and dropshipping, looking at how they work, approximate cost, pros and cons. Make a coffee, and let's get started.
What is ecommerce?
Ecommerce is a classic business model of commerce or online store. It consists of creating an online store to sell products that you have previously purchased, stocked and managed. That is, as the owner of the online store, you are responsible for buying inventory, storing it, and shipping it to your customers when they make a purchase.
How does it work?
1. Acquisition of products: You purchase products from suppliers or manufacturers, just like any physical store.
2. Storage: You keep the inventory in a warehouse.
3. Store management: You set up your online store, displaying your products with attractive photos, descriptions and competitive prices.
4. Order processing: When someone buys, you pack and ship the order. 5. After-sales: You take care of any inquiries, returns or problems related to the product.
What is dropshipping?
Dropshipping is a variant of ecommerce, which eliminates the need to manage inventory. In this model, you act as an intermediary: you sell products in your store, but you do not buy or store them in advance. Instead, an external supplier is responsible for producing, storing and shipping the products directly to the customer.
How does dropshipping work?
1. You choose a sector: You decide what kind of products you want to sell (clothing, technology, household items, etc.).
2. You connect with a supplier: You find a dropshipping supplier that offers the products you want to sell.
3. You create your store: You design your online store to show the supplier's products as if they were yours.
4. Order processing: When a customer purchases, the order is automatically sent to the supplier.
5. Shipment to the customer: The supplier is responsible for packaging the product, and shipping it directly to the customer.
Key differences between ecommerce and dropshippinh
Both models are focused on selling products online, but have significant differences. Here is a breakdown of the main ones:
Initial investment:
● Ecommerce: You need to buy inventory in order to start selling, which may require a considerable initial investment. In addition, you must consider additional costs, such as warehousing and shipping.
Dropshipping: The initial investment is minimal, because you do not buy inventory. You only need to pay for the creation of the store and the tools to manage it.
Inventory management:
● Ecommerce: You are responsible for maintaining and organizing inventory. This includes forecasting demand, avoiding overstock and managing returns.
● Dropshipping: You don't have to worry about inventory. The supplier stores and manages the products.
3. Control over products:
● Ecommerce: You have full control over the products, such as packaging and unboxing experience.
● Dropshipping: It is simpler to operate, as much of the logistical tasks are performed by the supplier.
4. Time and effort
● Ecommerce: Requires more time and effort, especially in inventory management and logistics.
● Dropshipping: It is simpler to operate, because your tasks are based on intermediation.
5. Profit margin
● Ecommerce: usually offers higher profit margins, because you buy products in bulk.
● Dropshipping: margins are lower, because the supplier charges for its logistics work.
6. Scalability
● Ecommerce: Scaling an ecommerce can be a challenge, involving having great control over inventory and logistics.
● Dropshipping: It is easier to manage , because you don't need to worry about warehousing or shipping large volume of work.
Advantages and disadvantages of each business model
Traditional Ecommerce
Advantages :
● You have greater control over the customer experience.
● You have a greater chance of controlling the packaging.
● Profit margins are usually higher.
Disadvantages:
● Requires a higher initial investment.
● Stock management can become complicated.
● You run the risk of being left with unsold products.
Dropshipping
Advantages :
Low initial investment.
● Easy to start and operate.
● No warehousing or inventory management required.
Disadvantages:
● The profit margin is lower , compared to ecommerce. ● You have a total dependence on the supplier.
● Increased risk of problems with quality or shipping.
When should you choose to create an ecommerce?
● When you have start-up capital to invest in inventory and want to build a strong, customizable brand.
● If you plan to sell exclusive products or products designed by you.
● If you are looking to offer a unique and differentiated customer experience.
How much should you opt for dropshipping?
● If you want to start an online business with a limited budget.
● If you don't want to deal with inventory, warehousing or logistics.
● If you wish to test a market sector, assuming lower risks.
The future of online stores
Ecommerce and dropshipping are constantly evolving. Platforms like Shopify, Amazon and AliExpress have made both models more accessible than ever. In addition, novel technologies such as artificial intelligence, combined with data analytics, are transforming the way this business model operates.
An interesting trend is the growing importance of branding in dropshipping. More and more entrepreneurs are looking to customize their dropshipping businesses to create more personalized brands. This can include customized packaging, better return policies and marketing strategies focused on customer experience.
Conclusion
Choosing between ecommerce and dropshipping depends on your goals, budget and time available. If you want to build a long-term brand and have start-up capital, ecommerce may be the best option. On the other hand, if you are looking for a low-risk business model that is not too complicated to scale, dropshipping may be your best option.
Both models have the potential to generate income if done properly. The most important thing is to research, plan and be willing to adapt to market changes.
Are you ready to start your digital commerce journey?
At Adsual we can help you create a fully adapted marketing strategy that will make your online store take a leap forward.
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Book a video call where we will answer your questions and help you , free of charge, to plan the strategy that will most benefit your company.
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