Dropshipping is a way of retailing where stores never physically keep their products sold. Instead, when the retailer sells one of their products on their website, they buy it from a third-party supplier who then sends the goods directly to the end customer. | Dropshipping Business Easy Guide 2020
So, online sellers never really see, keep or ship this thing, they are advertising it effectively to the provider and marketing the product price so that they can make a profit. How to break it, how the process is done is:
- Retailers in their website or market “Stock” products
- Retailers do not actually keep these products, they are suppliers or wholesalers (which can be anywhere in the world). The price of these products can be 1 per unit cost from the supplier, while DropShipper lists them at $3 (making a profit of $2 per sale).
When. When a user orders a product from the Dropshipper website, the customer is notified. Then the customer sends the order manually or automatically to the supplier.
- The supplier completes the order and sends it directly to the customer in the name of Dropshipper.
Benefits of Dropshipping
It’s easy to start – it’s easy to run an e-commerce business when you don’t have to deal with physical products. With drop-shipping, you don’t have to worry about it:
- Managing or paying for a warehouse
- Packing and sending your orders
- Beware of inventory for accounting reasons
- Handling return and internal delivery
- Permanent Order of Products and Stock Level Management
Low Overhead – Since you don’t have to deal with buying inventory or managing the warehouse, your head costs are quite low. In fact, many successful drop-off slot shopping businesses run at less than $100 a month with a laptop from the home office because of the right platform and good hosting. With your increase, these costs will likely increase, but still less than the traditional brick and mortar business.
Flexible location– Drop-shopping business can be run anywhere with a connection to the Internet. As long as you can communicate with suppliers and users easily, you can run and manage your business.
A wide selection of products – since you don’t have to prepurchase the goods you sell, you can offer a row of products to your potential customers. If suppliers stock something, you can enter it for sale on your website at no additional cost.
It’s easy to scale – with traditional business, if you get three times more business, you’ll normally need to work three times more. While benefiting the drop-shipping suppliers, most of the work that suppliers will do to implement additional orders will be to extend you with less increased pain and less work. Sales growth will always bring additional work – especially in customer service – but businesses that use the drop-off scale especially compared to traditional e-commerce businesses. | Dropshipping Business Easy Guide 2020
Cons of Dropshipping
There can be some limitations or cons of drop shipping that;
- Not all wholesale vendors offer drop-shopping
- Wholesale price is based on only one product
- You should spend time researching to get the right product (products) to sell