From Dropshipping to E-commerce: The Evolution of Supply Chain Management

Basically, what he's saying is what I mentioned earlier: he and his team made original products using manufacturers in China. However, that manufacturer took the product and listed it on AliExpress themselves. To overcome this, he developed his own supply chain methods and started managing inventory, which is essentially what 3PLs (Third-Party Logistics) do. As the host calls out, this is just not Dropshipping anymore.

When you start scaling even higher, you have to call the manufacturer to see if they can produce in time, which means it quickly transitions from Dropshipping to E-commerce.

Keywords

Dropshipping
E-commerce
Supply Chain Management
AliExpress
3PLs (Third-Party Logistics)
Scaling
Manufacturer
Original Products
Inventory Management
China

FAQ

Q1: What is the main difference between Dropshipping and E-commerce? A1: Dropshipping involves selling products directly from suppliers without managing inventory, whereas E-commerce involves inventory management and often uses advanced supply chain methods.

Q2: Why is sourcing from AliExpress considered a noob move in Dropshipping? A2: Sourcing from AliExpress is considered a beginner's strategy because it often involves longer shipping times and less control over product quality compared to sourcing directly from the same factories.

Q3: What does 3PL stand for and what does it involve? A3: 3PL stands for Third-Party Logistics. It involves outsourcing the logistics processes, including inventory management, warehousing, and fulfillment services, to another company.

Q4: How do businesses transition from Dropshipping to E-commerce? A4: Businesses transition from Dropshipping to E-commerce by developing their own supply chain methods, managing inventory, and ensuring timely production and delivery. This often requires direct negotiation with manufacturers.

Q5: Why did the video mention the necessity of calling manufacturers when scaling up? A5: Calling manufacturers becomes necessary to ensure they can produce the required quantities within the desired timeframe, crucial for sustaining higher scales of operation effectively.