Drop-shipping (also known as drop-shipment) is currently one of the “hottest” business models in modern e-commerce thanks to its low initial investment and virtually no need for warehousing. So what is drop-shipping? It is a business model where you sell products without needing to stock inventory in advance: when a customer places an order, you forward the order to the supplier, and they ship directly to the end customer.
The main profit comes from the price difference (usually 30-60% depending on the product), and the entire process is focused on marketing: building content, running
Facebook/TikTok/Google ads, and SEO on Shopee/TikTok/Lazada to attract customers. However, product quality depends entirely on the supplier. This is the biggest risk if you don’t choose a reliable source.
With zero warehousing risk and high profit potential, drop-shipping is ideal for beginners starting online. This article will help you fully understand what drop-shipping is, how to optimize marketing, and how to control product quality for sustainable success.
Drop-shipping is not a “get rich quick” method
Definition: What Drop-Shipping Really Is
Imagine you are a professional “broker”. You don’t need to own inventory or worry about crowded warehouses. Instead, you focus entirely on finding and promoting products to customers.
Drop-shipping is a business model that skips the warehousing and shipping step. You don’t need to import goods or store products, you simply forward the order to a third-party supplier, and they ship directly to the customer. The process is invisible to the customer, but highly efficient.
Business Process: Entirely Focused on Marketing
The defining feature of drop-shipping is that you don’t have to worry about warehouse operations or product packaging.
Instead, all resources are focused on marketing and sales:
| Operation Step | Seller (Dropshipper) | Supplier |
| Advertising & Marketing | Maximum focus | No involvement |
| Warehouse Management | Not required | Full responsibility |
| Packaging & Shipping | Not handled | Fully managed |
| Customer Support | Main support | Technical support |
You will use tools such as SEO (Search Engine Optimization), paid advertising, social media (Facebook, TikTok, Instagram) to attract customers. Building a professional online store, creating attractive content, and sharp marketing strategies are the keys to success.
Profit from Price Difference: The Money-Making Mechanism
This model works based on profit from the wholesale-retail price gap:
- You sell to the customer at: $200
- You buy from the supplier at: $150
- Your profit: $50 (after deducting marketing costs)
However, in reality, the profit margin is often thinner than traditional business (10-30%) due to low entry barriers and fierce price competition.
To maximize profit, you need to:
- Choose niche products with high demand but low competition
- Set reasonable yet competitive pricing
- Optimize marketing costs for the best ROI (Return On Investment)
Profit from the wholesale-retail price difference
Product Quality: The Biggest Challenge
Since you never physically handle the product, quality control becomes the single largest challenge in drop-shipping:
| Risk | Impact | Solution |
| Damaged or defective goods | Damages brand reputation | Choose reputable suppliers |
| Slow delivery | Customer dissatisfaction | Carefully check delivery times |
| Poor packaging | Bad customer experience | Require standardized packaging from supplier |
Drop-Shipping for International Businesses Entering Vietnam
From a global perspective, drop-shipping offers a golden opportunity for international businesses to enter the fast-growing Vietnamese market without heavy investment.
Advantages: Low startup costs, flexible product range, no inventory risk, and easy scalability in Vietnam’s booming e-commerce (Shopee, Lazada, TikTok Shop).
Challenges: Thin margins, intense local competition, difficult quality control, and the need for strong localized marketing skills to win Vietnamese consumers.
To succeed, international businesses need comprehensive marketing strategies tailored to Vietnam, reliable suppliers with fast shipping, and building trust through localized branding and customer service.
Drop-shipping: An export opportunity for Vietnamese SMEs with low costs and flexibility, but thin profit margins, high competition, and the need for strong marketing and reliable suppliers
Contact Gmajor to Find Reliable Suppliers
Gmajor provides a platform connecting businesses with trusted suppliers worldwide, supporting Vietnamese SMEs to effectively apply the drop-shipping model.
Gmajor offers comprehensive accompanying service packages:
- Operational Manpower: Professional support + 3 potential partners per month
- Negotiation Commitment: 6 partners + 3 negotiation sessions per month
- Internal Training: Comprehensive from partner sourcing to personnel training
- Advertising Packages: Increase global visibility on the Gmajor platform
20% discount offer – Contact us today!
📞 Hotline: 036 300 3831
📧 Email: support@gmajor.biz
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