How would you think about acquisition in a dropshipping business? Cost of customer acquisition is ever increasing, lack of unique products... is the main value is in its email list? I have dabbled in dropshipping this summer (who hasn't?!) and the "typical" business practice is awful
I think it's tough to provide a blanket statement about dropshipping acquisitions. There are certainly some unique considerations such as CAC, suppliers, competition, chargebacks, etc. On CAC - yes, costs are increasing in certain channels but they are surprisingly low in others. One thing I'd keep in mind that not all dropshipping is "awful". I really think it depends on the individual business. You can have US suppliers and still do dropshipping. Having said that, my strong preference is for online businesses which are inventory-free.
There is an episode of the My First Million podcast with President of Shopify as the guest. He talks a bit about dropshipping and how it gets a bad reputation which is not always deserved.
I don't know if that really answers your comment but feel free to e-mail me and we can discuss further.
How would you think about acquisition in a dropshipping business? Cost of customer acquisition is ever increasing, lack of unique products... is the main value is in its email list? I have dabbled in dropshipping this summer (who hasn't?!) and the "typical" business practice is awful
I think it's tough to provide a blanket statement about dropshipping acquisitions. There are certainly some unique considerations such as CAC, suppliers, competition, chargebacks, etc. On CAC - yes, costs are increasing in certain channels but they are surprisingly low in others. One thing I'd keep in mind that not all dropshipping is "awful". I really think it depends on the individual business. You can have US suppliers and still do dropshipping. Having said that, my strong preference is for online businesses which are inventory-free.
There is an episode of the My First Million podcast with President of Shopify as the guest. He talks a bit about dropshipping and how it gets a bad reputation which is not always deserved.
I don't know if that really answers your comment but feel free to e-mail me and we can discuss further.