To put it in simple terms, Dropshipping is the process of sending products directly from your manufacturer to your customers in order to prevent any upfront inventory costs or shipping logistics.
It is a 4 step process:
- Customer places an order on your online store.
- The order request is sent directly from your online store to the supplier.
- The customer’s order is prepared by the dropshipping supplier.
- The order is shipped directly to the customer by the supplier.
Benefits of dropshipping:
- Less Capital is required - The biggest advantage of the dropshipping model is that you can set up your eCommerce store without having to spend a dime on inventory.
- Easy to get started - With dropshipping you don’t have to worry about tracking inventory, packing and shipping the orders, managing a warehouse, or handling returns.
- Low overhead - Your overhead expenses are quite low as you don’t have to deal with managing or paying for a warehouse.
- Flexible Location - As long as you can communicate with customers and suppliers easily, you can run and manage your dropshipping business from anywhere with an internet connection.
- Wide Selection of products - Since you don’t have to purchase a product unless you’ve already made the sale, it is easier for you to offer trending products to the target audience and list it on your online store at no additional cost.