Automated Dropshipping: Let it Work While You Sleep

8 mins 24 secs read

Imagine it's early morning; you've just opened your eyes and decided to monitor your notices. So, while you were sleeping, your store could process ten orders, and you have nothing to do but collect your income. In this article, we will talk about how to automate your business so that all the routine work is done for you.

Online transformation seems like endless construction, where a robust digital infrastructure is built brick by brick. But without a proper foundation, such a structure can be unstable even with minor wind gusts and eventually collapse. An entrepreneur should aim to build a versatile ecosystem where stakeholders may prosper and be open to innovation. It's easy to discuss all of this without question, and it's hard to get it right. So we'll help you create a clear strategy for reinventing the customer experience (CX) and plant the seed of readiness in your head on the path to the best automated dropshipping exporters.

Table of Contents

What is automated dropshipping?

Advantages and disadvantages of using automated dropshipping

What is automated dropshipping for a POD business?

Conclusion

What is automated dropshipping?

Automated dropshipping is a business model that relies on third-party order management - software that can approve, ship, assemble and package goods. This technology supports all the routine actions that entrepreneurs usually perform manually. Its primary purpose is to minimize the cost of labor and material resources. 

Despite the possibility of hiring an outsourced team that could achieve high-performance results, dropshipping software for small businesses shows itself much more effective, especially when the cost of error is high. After spending some time setting up the system, you'll find that your business is doing better than before - by the way, this was mentioned by Tim Ferriss in his book "The 4-Hour Workweek". 

The miracle of systematization and automation will keep the trajectory and expand the range of influence in the POD services market. 

So we have the most critical question: how can you automate dropshipping? You have two options:

1. Hire a virtual assistant (VA). A VA is a person who administers the biz. Don't expect them to have excellent skills with the software your site is built on - any integrations may be novel, so you'll have to spend time learning. Nevertheless, you have every chance to discover a talented candidate and build an excellent outsourcing team. 
2. Use the software. You can create, set, and launch an automated e-commerce store with direct shipping using integrations on Etsy or Shopify. For instance, DropZa is a hybrid framework that smoothes workflows and facilitates management routines. In addition to easy importing and customizing goods from any source you need, the program centralizes user interaction with various sales channels.

When it comes to your auto ordering dropshipping, it is crucial to start manufacturing and transporting the goods. Any delays in the website’s performance affect its reputation in the network. According to statistics, 58% of the clients choose purchasing options with the fastest delivery. For example, if you are in dropshipping in Canada and merchandise a mix of items sourced somewhere, set up each channel to direct orders to the appropriate supplier and the other things to your platform.

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Advantages and disadvantages of using automated dropshipping

The demand became the impetus for the rethinking of existing biz concepts - physical locations were reborn as e-commerce sites, which later began to acquire the functions of automated dropshipping stores. Investments have become even riskier because now competitiveness in the market is determined not only by quality but also by the speed of processing orders, clients’ feedback, and, of course, the price. Prioritizing digital was a change born out of necessity that has yielded tremendous benefits, says retail director Chris Francis. To become a cutting-edge brand, he advises creating a new virtual space with room for growing online ambitions.

While automating dropshipping business, the entrepreneurs make their life easier by devoting free time to more critical tasks (e.g., marketing and brand promotion).  Eventually, it becomes a real headache when you do collaborative, operational, and analytical activities to synchronize the trading platform and CRM system. You will have to perform a series of actions, which will result in a part of the accounting report but not an effective management tool. Start an automated dropshipping website to make it a valuable part of administrative work. Then, exhausting work will take on a whole new form, with no room for mistakes or high expenditure of resources. 

Of course, the advantages of this management model are obvious, but it also has disadvantages. Many thought that the Covid-19 would prove the doom-mongers trueness at last. A highly cited paper announced by America’s National Bureau of Economic Research demonstrated that a pandemic “may speed up the automation of vacancies,” and another declared that it was “strengthening both the tendency towards automation and its consequences.” The consequences have been oppressive unemployment, even as global expenses in the labor force have risen. The fact that humans are becoming unnecessary in the robots’ world and low-skilled employees are now the most vulnerable segment of society scares humanists, but not the great Elon Musk. 

Dropshipping pros and cons have become so controversial in easing the entrepreneur's plight that many renowned economists are proposing a new opinion. Taking a solid macroeconomic stance, they argue that a direct impact of using software in biz may increase employment and the ability to scale. According to Joonas Tuhkuri of the Massachusetts Institute of Technology (MIT), the initiation of leading technologies enhances employment. On the other hand, theoretically and even practically, companies that implement dropshipping order automation can be so prosperous that they drive rivals out of business, all while shortening the number of existing jobs. 

Some also believe that even the best dropshipping automation software reduces work effectiveness. While the others think it creates an environment where the reward moves exponentially toward the top. So who is right and who is wrong - let's compare the pros and cons.

Let's start with the positive side of introducing software in the print on demand business:

1. Increased efficiency. Instead of manual checks, possible errors, and order approvals, the framework can do everything for you by following a specific behavioral template. Thus, the waiting time for order processing will be reduced, increasing customer loyalty.
2. Accuracy of business operations. Among the significant number of cases, it is easy to get confused and make mistakes. The human factor can play a cruel joke by turning "good" customers into pumpkins. 
3. Small capital. You don't need mountains of money to launch effective software - dropship e-commerce automation service providers can give you enough time to keep the item afloat and renew it regularly: round-the-clock support and the ability to add custom functionality.

And here are a few disadvantages of implementing such systems:

1. More know-how. Sometimes even minimal knowledge of the IT sector can be a great privilege to use the digital innovation.
2. Less control. By doing e-commerce, you may lose control over different aspects of your biz: your employees can make software configuration mistakes, and you'll find yourself out of the supply chain.
3. More sales - more money. For the technical stack that you have just implemented to pay off, you will have to merchandise goods in large quantities to make real earnings.

If the pandemic-induced wave of fully automated dropshipping that "kills" jobs does not happen, it will be another example of misplaced fears about the digitalization of society. Japan, Singapore, and South Korea are excellent proof of this - their technological sophistication has reached an apogee compared to the U.S. and European markets. Moreover, by reducing the cost of production through software, these countries have made an artificial demand for goods and services, taking the lead among the best players.

What is automated dropshipping for a POD business?

So, we analyzed automated dropshipping advantages and disadvantages and concluded that it is wrong to think that people will necessarily be better placed to perform the objectives involved in meeting the demand. This also applies to the POD biz: global bank lending standards have tightened, and fiscal incentives do not strongly support small and medium-sized enterprises, which may initially be your company. This has led companies to avoid investing, especially today when the uncertainty level is high. Entrepreneurs are increasingly asking how to set up automated dropshipping and where to find the best supplier. Communication between both parties is equally important: the virtual world has become dependent on video and messengers, which sometimes affects the quality of the result. After all, nerve signals set the pace and style of communication, and the online environment is not yet as effective as live contact.

However, to make your technology stack work, keep your sales and promotion channels. Social networks are one of the most robust trading channels in the 21st century. Besides, any business without a strategy on Facebook, Instagram, or Twitter is losing the possibility to take part in a massive financial sector with tons of increasing ability. Don't lose sight of the email newsletter, which usually does not incur extra costs but is an effective tool for notifying and tracking customer feedback. One of the best automated dropshipping software supporting the communication management function is PodZa or its hybrid version, DropZa. These frameworks will allow you to send thank you letters, get notifications about unpaid invoices, or even generate them. 

Launching a company is impossible without a supply and sales strategy and establishing a clear difference between dropshipping and print on demand processes. For instance, for sellers focused on merchandising custom designs on white label items, it's worth using PodZa, a platform based on the experience of automated Shopify dropshipping. By applying upsells and cross-sells tactics and combining them with a reliable technical stack, you can become the same as McDonald's but only on the print on demand market. Do you remember their extra fries, ice cream, or coke? So, by increasing the average price of the order with the help of software, you will be able to affect more audience segments and thus scale.

If you are focused on automated dropshipping items from Amazon or Aliexpress, then DropZa will do. It allows you to rapidly export things for sale across several types of partner stores. Moreover, you will be able to manage multiple channels simultaneously, change prices, create discount systems, control delivery, monitor tasks, and communicate with suppliers by messages (written manually or sent automatically).

Today, it is worth going to the rhythm of events to prevent this from happening. In the e-commerce industry, auto dropship has become a trend, facilitating the adaptation of the working environment and maintaining product innovation. At this interaction's kernel is a reliable software model, which raises performance and contributes to economic growth. For instance, Aliexpress dropshipping and print on demand have combined to become new biz imperative in this modifying market landscape. Such a concept unification makes it possible to make a virtually endless flow of orders and vary the cost as you like, but only on one condition: the implementation of dropshipping automation tools. 

The benefits of such integrations are apparent - they build the business process and run it on autopilot. This is an engaging business model because it needs small capital and allows you to concentrate more on promotion and company development. 

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Conclusion

Automated processing has become a trend these last few years: the Covid-19 pandemic has kicked off the tech industry and changed society fundamentally. Some believe that total digitalization will lead to the uselessness of the person, while others are already seeing positive developments in the form of increased hiring and exponential growth in remuneration. 

To become more productive, entrepreneurs constantly try to find the answer to what dropship inventory is needed. In this post, the MPS editorial board tried to uncover the basics of digital entrepreneurship and uncovered the soup's mystery ingredient, print on demand.