Dropshipping is a method of retail fulfillment where a store doesn’t stock the product it sells. Instead, the store purchases the item from a third party and ships it directly to the customer. The seller does not have to handle the shipment of the product directly.
Here is how dropshipping works:
- The customer places an order from the eCommerce store.
- The retailer automatically forwards the details of the customer as well, as the order to the dropship supplier.
- The dropship supplier forwards the order directly to the customer.
Dropshipping is a blessing for entrepreneurs as one doesn’t have to open a brick-and-mortar store, pay overhead, and stock products. Here, your eCommerce store will act as a middleman between the customer and the seller. The eCommerce store owner can make a huge profit as the dropshipping model is simple and rewarding.
Benefits Of Dropshipping
- Easy To Start
- Easy To Scale
- Doesn’t Require A Huge Capital
- Provides Flexibility
- Easy To Manage
- Wider Products To Sell
Easy To Start
One does not need any prior business experience to begin an eCommerce business with the dropshipping model. All you need to know is the basics of running an online retail store.
Dropshipping is easy as the effort required is lesser. The store owner does not have to bother about the warehouse management or worry about stocking or shipping either. You can start your business with ease. On getting going, you can manage your business hands-off.
Easy To Scale
One of the benefits of the is that it’s highly scalable, without having a big-affect on your business model. Sales and marketing will require more focus and effort, but the business model will remain the same.
Dropshipping is beneficial for an entrepreneur as scaling is not a costly affair. The model is ideal for the growth of your online retail store, and one can manage it alone or with a small team.
Dropshipping Doesn’t Require A Huge Capital
One can start a dropshipping business with minimal funds as it requires marginal investment. One can run the entire business from a laptop or a pc, without any major investment. Even as your business grows, the costs are comparatively lower than the traditional businesses.
Dropshipping Provides Flexibility
Dropshipping provides immense flexibility, letting you run your business by your own rules.
You can run your business from anywhere from a laptop, and at the most convenient times. The model is ideal for entrepreneurs who love the flexibility, getting things done at their own pace.
Dropshipping is also flexible in making decisions. It is easy to list products or change business strategies. Moreover, one can automate the business process with ease.
Easy To Manage
As the commitments for running the business is less, it’s easily manageable. On finding the right products and suppliers, all you need to take care of is the storefront.
Wider Products To Sell
As you do not have to pre-purchase the items, you can offer a wide range of products to the customers. If the supplier has any items in the stock, you can list it in your eCommerce store.
As it’s easy to start with and run, dropshipping business is highly popular among entrepreneurs and eCommerce store owners. Dropshipping is easy, scalable and requires lesser capital, making way for its popularity. Want to know more about dropshipping and eCommerce stores? Say hi for free consulting.
How much do I need to invest to start dropshipping?
It is hard to estimate the cost to start a dropshipping business. You need to invest in eCommerce app and get a license to start the business. The price of the eCommerce app depends on the features, design, pages and other factors.
What is a dropshipping business?
Dropshipping is a method of retail fulfilment where a store doesn’t stock the product it sells. Instead, the store purchases the item from a third party and ship it directly to the customer. The seller does not have to handle the shipment of the product directly.
What are the benefits of dropshipping?
The main benefits of dropshipping are:
- Easy to start
- Easy to scale
- Does not require a large capital
- Easy to manage
- Wider products to sell
What are the disadvantages of dropshipping?
The major disadvantages of dropshipping are:
- Low-profit margins
- Highly competitive
- No control over supply-chain
- Legal liability issues
- Difficult to build a brand
How does dropshipping work on an eCommerce website?
Dropshipping is a method of eCommerce where an online store sells products to consumers, but then, you forward the order details to the seller, who then ships the products to the buyer.