In business, the principle of “buy low, sell high” is fundamental. To succeed, you must clearly define your value proposition. Are you facilitating cross-border sales for a seller? Developing a unique product formulation? Offering exclusive designs or securing exclusive sales agreements? Or perhaps you’re purchasing in such large quantities that competitors can’t match your prices? Your value proposition must be significant.
Without a solid value proposition, your business becomes vulnerable to competition. This concept is often referred to as an “economic moat.” It’s essential to assess whether you have any protective advantages against rivals. If not, it may be time to re-evaluate your business model.
Lacking a moat doesn’t mean you can’t start a business; it simply means you’ll need to be strategic, resilient, and open to seeking help. You can read our guide on succeeding in Dropshipping. One effective approach for newcomers is the consignment or dropshipping model—though it’s best to avoid online marketplaces like AliExpress or Taobao, as they can be less effective. These models allow you to start with small quantities, helping you grow your business to a point where you can purchase in bulk for higher margins.
From my perspective, no supplier will refuse an opportunity for increased sales. Your task is to persuade them that you can help them reach new markets. Show them how your approach is unique and beneficial, ensuring that it won’t disrupt their existing sales channels or relationships with other suppliers. This will create a sense of security for them in partnering with you.
In summary, identify your value proposition, build your economic moat, and establish strong relationships with suppliers to create a sustainable business model.
