What is Dropshipping? Find out how it works.
What is Dropshipping and how does it work?
Dropshipping is a sales model whereby the merchant sells a product to an end user, without the need to purchase it first. After the sale, the merchant will send the order to the supplier, called the dropshipper, which will send the product directly to the end customer.
Using this method, the seller doesn’t have to handle any of the tasks related to the packaging or shipping process, and then can focus all attention on selling the products and on customer care.
Benefits for the retailer
The benefits for those who run an e-commerce store with dropshipping are many:
- They don’t need to invest capital in buying products in advance.
- For starting this kind of business, they don’t need warehouses or employees, they only need an internet connection and a good computer.
- They can sell their goods on their own eCommerce store and also on websites such as eBay and Amazon.
- They can decide to advertise their goods as they see fit: word of mouth, social networks, Google Adwords and so on.
Benefits for the Dropshipper
Why should a company offer dropshipping service to someone else? Actually, there are many reasons and here are some of them:
- it can expand its sales network by offering unlimited sales channels including offline, online and affiliates.
- With this method, the dropshipper has a wider penetration to explore new markets and new countries by using the dropshipping method.
Benefits for the Customer
Most of the time, the end customer doesn’t even realize whether the product is sold directly by the seller, or sent via dropshipping. Moreover, a lower price can be expected due to the fact that both the costs of shipping and storage of the goods have been cut and due to high supplier competition.
Dropshipping: the trend
The sales coming from dropshipping businesses are growing really fast and it seems that they will continue growing at least until 2023.
So if you want to start an online store with dropshipping, now is the time: the first thing that you need is to find a reliable supplier that takes care of the warehouse management, inventory, storage, shipment-receipt of products, etc. and then open a dropshipping store.
Read also: how to start a dropshipping business
Do you already know how to do it? Well, in this case try Yakkyofy, the software that helps you manage all the daily task of a dropshipping business.