What is Dropshipping and how does it work

What is Dropshipping and how does it work

El Dropshipping is a variant of Ecommerce where a store does not keep the products it sells in stock; instead, when a product is sold, the merchandise is purchased from a third party and then shipped directly to the customer. This means that the merchant never sees or manipulates the product.

In other words, the traditional e-commerce logistics changes completely, since in with the Dropshipping, the online store is only responsible for managing the orders of the clients, the invoicing and the generation of a database. It is the wholesale company that is responsible for storing, packaging and shipping the products to customers on behalf of the online company.

The biggest difference between Dropshipping and the traditional sales model, is that the merchant who sells does not have an inventory. Instead, the merchant purchases inventory from a third party as orders need to be fulfilled. This third party is generally a wholesaler or even the manufacturer of the product itself.

Of course, Dropshipping also has advantages and disadvantages. For starters, by not requiring so much capital, it is possible to start an online Ecommerce store without investing thousands of dollars in inventory. Nor do you have to worry about managing or paying for warehousing, packaging or shipping of orders, you don't even have to worry about the management of returns and inbound shipments.

On the other hand, and although the initial expenses are minimal, the profit margins actually we few. There is a lot of competition in the niches and also it is always depending on the inventory of the third parties. Not only that, when working with several suppliers, shipping costs are complicated, which in the end can have a direct impact on the price that the customer will have to pay.

As for whether or not this method of sale is worth it, just to say that while it has very clear advantages, it is also a fact that it comes with a number of complexities and problems that require careful planning to make the business prosper.


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  1.   Fernando said

    The truth is that a great model (I will not put my website)
    But it needs a lot of work like any other website
    Advantage is lstock theme
    I did it at tiendawebonline.es and I was very happy.

  2.   Andrea Car said

    If what you are looking for is to get started in the world of dropshipping, I recommend that you enter the BigBuy page. It is one of the largest dropshipping wholesalers in all of Europe. I have been working with them for over a year and I am very happy with their services. They solve any problem as quickly as possible and always try to make your life easier.