Home eCommerce Success Blog The Difference Between Dropshipping & Selling Your Own Products
August 03, 2020

The Difference Between Dropshipping & Selling Your Own Products

By Veronica Jeans, Ecommerce Queen
The Difference Between Dropshipping & Selling Your Own Products | veronicajeans.com
Do often wonder how exactly you'll 'have' products in your online shop? How do they get there? Should you use different dropshippers or should you buy wholesale and supply the products yourself? Maybe you should make something! As we explore these details, first check out these clients of ours and their different types of products:
- Dropship
Now, we will answer the following questions throughout this post:
  • What are the advantages and disadvantages of any of these?
  • How do you start?
  • Where do you find opportunities?
  • How much does it cost?

1. Making your own products

Pros

  • Low startup costs. Creating your own products compared to manufacturing - lots of units
  • Brand control. You control your brand and can change it at any time without restrictions. You can market your brand etc
  • Price control. Going hand in hand with brand control is the ability to price your products as you see fit.
  • Quality control. When you make your own products, you can control the quality of your products and make sure it is up to your standards and the expectations of your customers.
  • Agility.

Cons

  • High time input (time-consuming). Depending on your exact product choice, making your own products can be a time-consuming process, leaving you less time to focus on actually building your business.
  • Scalability. Making your products can become an issue when your business takes off. Although you have the option to look to a manufacturer for help as you scale up, this might not be easy or possible if your customers have come to expect your products to be handmade.
  • Limited product choices. As mentioned prior, your choices of potential products are limited to your skills and the resources you have available to you. This will vary from person to person.

2. Manufacture

Another viable option for acquiring your product and inventory is to find a manufacturer to produce the product for you. When sourcing a manufacturer, you have the option of sourcing one domestically or from overseas.

Pros

  • Lowest cost per unit. It’s not uncommon for manufacturing to garner the lowest cost per unit, giving you the greatest margins on your product.
  • Brand control. Having your product manufactured means you can build your own brand around your product and aren't constrained by others.
  • Price control. Along with the ability to build your own brand comes the ability to set your own prices for your product.
  • Quality control. Unlike dropshipping or purchasing wholesale, when you manufacture your own product you're in control of the quality of your final product.

    Cons

    • Minimum order quantities. One of the biggest disadvantages of manufacturing your own product is the startup costs required for initial orders. Depending on the costs of your product and the manufacturer, your inventory investment can reach thousands or tens of thousands of dollars, easily.
    • Potential for fraud from overseas manufacturers. Nothing will bring your business to a halt like being scammed by an overseas manufacturer.
    • Time to get up and running. Manufacturing a product will likely take you the longest to get up and running. Manufacturing can be a long process of prototyping, sampling, refining, and production. The difficulty of this process can be amplified, even extended if you plan on using an overseas manufacturer where language, distance, and cultural barriers can arise.

    3. Wholesale

    Buying wholesale is a fairly simple and straight forward process. You're buying your product inventory (usually other brands) direct from the manufacturers or from a middleman supplier at a discounted wholesale rate, which you in-turn, resell at a higher price.

    Pros

    • Selling already established products. Because you’re selling already established products helps to lessen the risk associated with purchasing inventory.
    • Brand familiarity. Selling already established brands can help position your brand by creating an aura effect on your brand.

    Cons

    • Selling already established products. Selling already established products can work for you as well as against you. Because the products are available from multiple retailers, you will need to fight extra hard to differentiate yourself and convince consumers to purchase from you.
    • Price control. Selling other brands means to some extent you have to play by their rules. Some brands will enforce price controls to prevent you from discounting their products. This limits your ability to have certain sales and offers.
    • Inventory management. When purchasing wholesale you will likely have to purchase a minimum order for each product. The minimum order will depend on the product and manufacturer, however, you will have to stock and hold inventory as well as manage that inventory for re-order.
    • Dealing with supply partners. If you're carrying an array of products, dealing with multiple supply partners can become difficult to manage. Requirements may vary from supplier to supplier.

    4. Dropship

    The main concept of dropshipping is selling products you don’t actually own. Working with dropship partners is not only a product acquisition model, but also includes product fulfillment. The process works by taking orders from your online business and forwarding them to your supplier/dropship partner. They in return, ship the product to your customer on behalf of your company. The key to making money with drop shipping is making a profit on the price difference between what you charge and what your dropshipping partners charge you.

    The biggest benefit to dropshipping is the ability to offer a large selection of products without purchasing inventory upfront and managing that inventory.

    Pros

    • Low startup costs. The biggest advantage of dropshipping is low startup costs. Because you're never carrying inventory you have no inventory costs which generally are the most substantial cost for a new eCommerce business.
    • Low risk. Since you don’t actually purchase your inventory upfront you aren’t taking the risk of having items you can’t sell.
    • Streamline sales. Dropship partners will take on the tasks of picking, packing, and shipping your product for you. The dropship option provides convenience and efficiency, so you can manage your business from anywhere in the world.

    Cons

    • High competition. Because dropshipping has such low barriers to entry, you can bet that a lot of people are doing it. This makes competition stiff and harder to set yourself apart from the crowd.
    • Low margins. Maybe one of the biggest disadvantages of dropshipping is the very low margins. This makes it extremely difficult to compete in the paid advertising space and means you’ll have to rely more on building content, service etc. Low margins also mean you have to sell at a significant volume to make a decent profit.
    • Inventory syncing (out of stock). One of the other major disadvantages of dropshipping is back-ordering. Because you’re relying on someone else’s inventory, the occasion may arise where you place a shipment request to the wholesaler, but the product is sold out. The effect of this is longer-than-normal delivery times and maybe reflect badly on the retailer.

    Resource: Shopify

    Whatever type of product you choose to sell, make sure you've done pretty extensive research about laws, fees, sales tax, and other housekeeping items.

    Now you know what type of product to sell, it's time to get started!

    If you need help, you can always reach out to me here:

    Contact Veronica

    Cheers!

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    Also in eCommerce Success Blog

    What is the difference between Shopify CSV and Matrixify Products import and export?

    By Veronica Jeans, Bestselling Author November 16, 2024

    Shopify CSV vs Matrixify Excel: A Comprehensive Guide to Product Management

    Managing product data in an e-commerce platform can be a complex task, especially when dealing with large inventories. This article compares two prominent methods for handling product data in Shopify: the native CSV system and the Matrixify Excel approach. We'll explore how these tools differ and why choosing the right one can significantly impact your workflow efficiency.

    Shopify vs Matrixify Comparison

    FEATURE SHOPIFY MATRIXIFY
    File Type CSV files Excel files
    Import/Export Visibility No visibility or control; must wait for email. Full visibility, progress updates, and cancel options.
    Export Options Exports full store with all fields, leading to duplicate rows. Granular export filtering, saves time and file size, no duplicate rows.
    Multiple Images Requires copying rows and adding each image to a separate row. Allows multiple images in one row, separated by semicolons.
    Metafields Cannot export/import Metafields. Exports and imports Metafields as columns in the table.
    Product Updates Replaces entire product; no field-specific updates. Allows individual field updates without replacing products.
    Template Suffix Cannot update in bulk. Supports bulk Template Suffix updates as a column.
    Product IDs Deletes and recreates products with new IDs, losing references. Keeps IDs and references intact, preserving Custom Collections.
    File Size Limit 15 MB (~10,000 products). Supports large files (e.g., 600,000+ products).

     

    Detailed Comparison between Shopify & Matrixify Product Management & Uploads

    File Format and Basic Handling

    Shopify CSV

    • File Format: Limited to CSV files only
    • Process Visibility: Upload and wait system
    • User Control: Minimal interaction during process
    • Progress Tracking: None email notification upon completion
    • File Size Limitation: Strict 15MB limit (approximately 10,000 products)

    Matrixify Excel

    • File Format: Works with Excel files (.xlsx)
    • Process Visibility: Real-time progress tracking
    • User Control: Full control with cancel option
    • Progress Tracking: Live progress bar with time estimates
    • File Size Limitation: Handles large files (600,000+ products)

    Data Management Capabilities

    1. Product Export Features

    Shopify CSV

    • Exports entire store inventory
    • No filtering options
    • All fields included regardless of need
    • Creates duplicate rows for variants and images
    • Limited customization options

    Matrixify Excel

    • Granular export control
    • Custom field selection
    • Filtered exports based on specific criteria
    • Efficient row management
    • Optimized file size through selective exporting

    2. Image Handling

    Shopify CSV

    • One image per row requirement
    • Multiple images need row duplication
    • Complicated management for product variants
    • Image Alt Text updates require full product reimport

    Matrixify Excel

    • Multiple images in single row
    • Semicolon-separated image sources
    • Streamlined variant management
    • Independent Image Alt Text updates

    Advanced Features

    3. Metafields Management

    Shopify CSV

    • No metafield support
    • Cannot export existing metafields
    • No import capabilities for metafields
    • Requires separate solution for metafield management

    Matrixify Excel

    • Full metafield support
    • Export metafields as table columns
    • Direct editing and updating
    • Integrated metafield management

    4. Product Updates and Maintenance

    Shopify CSV

    • Creates new product IDs on import
    • Breaks existing collection references
    • Full product replacement required
    • No partial updates supported

    Matrixify Excel

    • Maintains original product IDs
    • Preserves all existing references
    • Supports partial field updates
    • Selective field modification

    5. Inventory Management

    Shopify CSV

    • Basic inventory tracking
    • Single location focus
    • No adjustment features
    • Limited variant handling

    Matrixify Excel

    • Multi-location inventory support
    • Inventory adjustment tracking
    • Delta-based inventory management
    • Advanced variant generation

    6. Template Management

    Shopify CSV

    • No template suffix support
    • Cannot modify templates in bulk
    • Limited template customization

    Matrixify Excel

    • Full template suffix support
    • Bulk template modifications
    • Simple column-based management

    Special Features

    Matrixify Exclusive Capabilities

    1. HTML Code Optimization

    • Automatic fixing of escaped HTML code
    • Converts symbols to proper HTML

    2. Variant Management

    • Bulk variant generation
    • Option combination support
    • Semicolon-separated combinations

    3. Publishing Control

    • Flexible channel publishing
    • Online and POS integration
    • Custom publishing scope settings

      Best Practices and Recommendations

      When to Use Shopify CSV

      • Small product catalogs 
      • Basic product updates
      • Simple inventory management
      • Standard product configurations

      When to Use Matrixify Excel

      • Large product catalogs
      • Complex product configurations
      • Multi-location inventory
      • Detailed metafield management
      • Bulk template updates
      • Advanced variant management

      While Shopify's native CSV system provides basic functionality for smaller stores, Matrixify Excel offers a more robust, flexible, and efficient solution for managing product data. The choice between the two largely depends on your store's size, complexity, and specific needs. For larger operations or those requiring detailed control over their product data, Matrixify Excel presents clear advantages in terms of functionality, efficiency, and scalability.

      Remember that investing time in learning the more powerful tool can save significant time and reduce errors in the long run, especially as your store grows and your product management needs become more complex.

      Frequently Asked Questions (FAQ)

      General Questions

      What's the main difference between Shopify CSV and Matrixify Excel?

      The main difference is that Shopify CSV is a basic file format with limited functionality, while Matrixify Excel offers advanced features like real-time tracking, multiple sheets, and partial updates. Matrixify also allows you to work with pure Excel files instead of CSV format.

      Which option is better for my store?

      It depends on your store size and needs:

      Use Shopify CSV if:

      •   You have under 10,000 products
      •   You need basic import/export features
      •   You're doing simple updates

      Use Matrixify if:

      •   You have over 10,000 products
      •   You need advanced features
      •   You want better control over updates
      •   You work with multiple locations
      •   You need to manage metafields

      File Size & Limitations

      What are the file size limitations?

      Shopify CSV: 15MB maximum

      Matrixify: Can handle gigabytes of data (600,000+ products)

      How many products can each handle?

      Shopify CSV: small catalog

      Matrixify: 600,000+ products in one import

      Features & Functionality

      Can I update specific fields without replacing entire products?

      Shopify CSV: No, you must replace the entire product

      Matrixify: Yes, you can update individual fields

      How do multiple images work in each system?

      Shopify CSV: Requires separate rows for each image

      Matrixify: All images can be in one row, separated by semicolons

      Can I manage metafields?

      Shopify CSV: No metafield support

      Matrixify: Full metafield support with column-based management

      Import/Export Process

      How do I track the progress of my import?

      Shopify CSV: No tracking wait for email notification

      Matrixify: Real-time progress bar with estimated completion time

      Can I cancel an import once it's started?

      Shopify CSV: No

      Matrixify: Yes, at any time during the import

      Data Management

      What happens to product IDs during import?

      Shopify CSV: Creates new IDs, breaking collection references

      Matrixify: Maintains existing IDs and references

      How are variants handled?

      Shopify CSV: Each variant requires a separate row

      Matrixify: Can generate variants from combinations using semicolon separation

      Technical Questions

      How does each handle HTML in descriptions?

      Shopify CSV: Leaves escaped HTML code as is

      Matrixify: Automatically fixes escaped HTML code to normal HTML

      Can I manage inventory across multiple locations?

      Shopify CSV: Limited location support

      Matrixify: Full multi-location inventory management

      Best Practices

      What's the recommended way to update product prices?

      Shopify CSV: Must upload full product data

      Matrixify: Can update prices alone using a simple price column

      How should I handle large product catalogs?

      Shopify CSV: Split into multiple files under 15MB

      Matrixify: Can handle in single file with filtering options

      Troubleshooting

      What if my import fails?

      Shopify CSV: Check email for basic error message

      Matrixify: Detailed error reporting with specific row/column information

      How do I fix broken product references?

      Shopify CSV: Manually rebuild collections and references

      Matrixify: No action needed references are maintained

      Integration & Compatibility

      Do these work with all Shopify plans?

      Both work with all Shopify plans, but Matrixify requires a separate subscription.

      Can I use these with other e-commerce platforms?

      Shopify CSV: Shopify-specific format

      Matrixify: Designed for Shopify but Excel format is more universal

      Support & Resources

      Where can I find documentation?

      Shopify CSV: Shopify Help Center

      Matrixify: Comprehensive documentation with tutorials and examples

      Is there technical support available?

      Shopify CSV: General Shopify support

      Matrixify: Dedicated support team with Excel/import expertise

      Cost & Efficiency

      Which option is more time-efficient?

      Matrixify is generally more time-efficient due to:

      Faster processing of large files

      • Ability to make partial updates
      • Better error handling
      • Real-time progress tracking

      How do they compare in terms of cost?

      Shopify CSV: Free with Shopify subscription

      Matrixify: Requires separate subscription but offers more features and efficiency

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