Online eCommerce is growing at an amazing pace with annual sales expected to reach $4.5 trillion in 2021according to eCommerce statistics. Businesses all around the world are fighting to get online presence and offer their goods and services online. Yesterday’s B2B companies, limited by the absence of retail infrastructure, can finally enter a B2C market and offer their products to a broad audience directly through eBay, Amazon, Shopify and hundreds of other platforms.
Everyone from small production businesses and up to manufacturing giants are building an online presence and searching for ways to sell their products online. This is where companies like Modalyst enter the scene. Essentially, Modalyst is dropshipping software for eCommerce businesses. It automates your dropshipping business and connects you to the best dropship suppliers and products to sell online. Continue reading this Modalyst review to find out if you should give Modalyst a try.
Modalyst is a classic drop shipping service that connects you to the verified product suppliers and allows you to directly sell their inventory to your customers. The main advantage of this approach is that you do not have to invest in building your own warehouses and stock products. Therefore, both risk and entry barrier is reduced to such extent, that any person can try out this business model for less than $100.
If you decide to give it a shot you should know that your role is to learn how to market and sell suppliers’ products online and the supplier’s role is to ship product to your client as soon as you receive an order from your customer. Modalyst’s role is to automatically route the order to its platform and notify the supplier about the order. Modalyst also facilitates all communication between you and the supplier while automating as much of the ordering process as possible.
How much profit you can make is entirely dependent on your online selling skills. Ability to correctly market the product, set up profitable social ad campaigns and optimize for conversions is the only way of making money with drop shipping.
Products available through the Modalyst platform include apparel, shoes, bags, furniture, electronics, accessories and many other. Product choice is where Modalyst shines in front of the competition. While most drop shipping companies focus on connecting European and American customers to Chinese product vendors, Modalyst focuses on cooperation with European and US-based suppliers.
When you are working with Chinese supplier through Aliexpress, it is not uncommon to see 3-8 week shipping times to the USA or Europe. And shipping cost eats up almost all of your profit margin. The situation is worsened by the Chinese suppliers often sending non-trackable shipments and you don’t know if your client actually received the item. Moreover, your customer is likely to pay the customs fee upon product delivery.
Modalyst is a goldmine for those who target mainly European and US-based clients. Delivering high quality US/Europe-made products fast increases client satisfaction level and reduces your risk of fraud and chargebacks. If something goes wrong, like the supplier ships the wrong product, you don’t have to wait another month for the return shipment, therefore you are less likely to face a refund request from your client.
Modalyst pricing calculator
Pricing rules are settings that you configure to show the correct price to your customers for each product in front of your store. Modalyst pricing calculator has 2 main options to choose from. You can set up product prices based on the Multiplied markup or Added markup.
With ‘Multiplied markup,’ you have to select a coefficient which will be multiplied with the original product price. For example, if the original item price with the supplier is $10 and you select the multiplier of 2.5, the price for this product shown to your customer will be $25.
The second option is to set up ‘Added markup’. In this case, the markup you select will be simply added to the product price. For example, if the original item price with a supplier is $12 and you select a markup of $5, then the price for this product in your shop will be $17.
Thanks to these pricing rules you can set different prices in bulk to your product categories or select appropriate pricing for different marketplaces to extract more value from specific events and holiday seasons in different countries.
Modalyst shipping prices
The shipping cost for each product on Modalyst is set by the product supplier and is calculated based on the following factors:
- Location of your store
- Suppliers warehouse location in relation to your store location
You can see the shipping rate for each item in the Modalyst product page and the warehouse location can be found in the “Shipped From” filter on the “Find Products” page. Also, you should take into account that shipping price for your client may differ if the client location is different from the location of your store.
Modalyst competitors include Oberlo, Volusion, Spocket, Avasam, Salesource and many others. As with most dropshipping platforms, you can try it out for free. Modalyst allows you to fulfil up to 25 orders in a Hobby plan for free. After that Modalyst pricing structure includes 2 paid plans:
- Startup – $35/month (billed monthly)
- Pro – $90/month (billed monthly)
Both Hobby and Startup plans allow only limited access to suppliers and Pro plan subscribers have access to premium suppliers. With all plans Modalyst collects a 5% transaction fee on each sale. Each supplier available through Modalyst agrees to price their products at 60% MSRP (manufacturer’s suggested retail price) for you, which means that you can place products in your shop at a reasonable market price allowing for a decent profit margin for you.
Modalyst vs Oberlo
These are the main differences between these two popular dropshipping platforms:
- With Modalyst you have access to the USA and European branded manufacturers, whereas with Oberlo products may be imported only from Aliexpress.
- Oberlo only works with Shopify and with Modalyst you can use WIX and Bigcommerce platforms in addition to Shopify.
- With Oberlo you have to import products into your store manually and with Modalyst it is a 1-click product import.
- With Oberlo you have to search underpriced products on Aliexpress, add shipping cost and your markup to extract profit while selling products at reasonable market prices. And with Modalyst supplier prices are set to 60% MSRP (manufacturer’s suggested retail price), which means that you can sell these products at reasonable market price while earning a profit on each sale.
- With Oberlo you have to take the risk of dealing with supplier scams and unreliable companies at your expense. Modalyst has verified branded and trustworthy suppliers available through the platform.
Modalyst is integrated with Shopify, BigCommerce and Wix. The integration process is very easy and straightforward. Overall Modalyst Shopify app has a good rating of 4.3. Bigcommerce and WIX apps have a good rating as well. Of course, it is impossible to satisfy everybody and there are always negative reviews. Take time to read both negative and positive reviews before installing the app. This way you might find many issues people complain about so you will know what problems to expect and how to avoid them.
Modalyst Private Label dropshipping
Modalyst added label customization possibility for retailers. At the moment, private labelling is available only with the Savoy Active brand. If you decide to sell their products, they will be shipped to your clients with your label and Savoy Active brand will not be mentioned anywhere. This option is not available with non-apparel products, as it’s not possible to sell electronics with your brand on it.
In terms of support, Modalyst mostly relies on self-help FAQ section, which is well-documented and should help with most cases. You are advised to search for an answer to your question in Modalyst help centre yourself. The help centre is easy to navigate and search feature works really well. In case you can not find the answer to your question you are welcome to use email@example.com email for communication. There is also a LIVE chat option and Modalyst support team usually replies within a couple of hours. Their Support team is available several hours per day, 7 days a week.
In eCommerce, it is not uncommon to find out that there are many additional costs over the initially advertised amount. For example with content management platforms, you are often faced with the necessity to install additional apps that will solve problems you ran into for additional monthly subscription fee. These fees stack up very fast growing into a significant monthly bill. With Modalyst there are no additional fees except for monthly subscription plan and transaction fees that are applied only when you make a sale.
Modalyst is an established player in the dropshipping market. As a drop shipper, you should never rely only on one service. It is recommended to use multiple services simultaneously to exploit their pros to the full extent.
With many dropshipping services today, there is no control over delivery speed or product quality. Modalyst is challenging this hurdle through cooperation with branded and verified suppliers. Finding responsible product suppliers who will consistently provide high product quality is the biggest challenge in dropshipping. It is hard to make long term business with unreliable suppliers, with Modalyst finding reliable partners is much easier and cheaper than with other drop shipping services.