What is Dropshipping?
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What is Dropshipping?
Dropshipping is a fulfillment model used by retailers to sell products without the responsibility of stocking the inventory. The products are listed on the storefront like any other business. Orders placed through the business are forwarded to the supplier for direct shipping. This is an ideal situation for both the retailer and supplier as it allows them both to win and helps both parties reach wider audiences.
How does dropshipping work?
Dropshipping is a fulfillment model used by retailers to sell products without the responsibility of stocking the inventory. The products are listed on the storefront like any other business. Orders placed through the business are forwarded to the supplier for direct shipping. This is an ideal situation for both the retailer and supplier as it allows them both to win and helps both parties reach wider audiences.
STEP 1
THE CUSTOMER PLACES THE ORDER
STEP 2
RETAILER FORWARDS THE ORDER TO THEIR SUPPLIER
STEP 3
THE SUPPLIER FULFILLS THE ORDER BY SHIPPING IT DIRECTLY TO THE CUSTOMER.
Benefits of dropshipping
Dropshipping is a conducive business model for budding and new entrepreneurs who want to taste success with minimal risk. It lets suppliers who are good at inventory management handle the problems related to stock and shipping while the entrepreneurs have a go at marketing and sales. Ultimately, your dropshipping business’s success depends on your chosen supplier and shipper. Some of the benefits of dropshipping are —
Low Investment
You can start a dropshipping business with very minimal investment. It is as simple as setting up an online store where your customers can visit and purchase your products. Today, we have major conglomerates, such as Amazon and Shopify, that simplify this even further by allowing people to create their storefronts directly on their websites.
Easy Setup
Your online store can be up and running in minutes. There is very little to get your online store set up in comparison to a physical retail store. Your processes are quite straightforward; all that is needed is simply forward orders placed on your website or online store to your supplier, who has the necessary stock for direct shipment.
Hassle-free Shipping
Your suppliers are experts at inventory management. Most suppliers bear the responsibility of managing inventory and outsourcing the shipping to a well-reputed shipping company to ensure your shipments are consistent and delivered on time. SFL Worldwide is a leading logistics company that is widely recognized for its international and domestic shipping services.
Is dropshipping worth it?
Yes. Dropshipping has several benefits for budding entrepreneurs and those with a penchant for dipping their toes in the world of eCommerce. This model could be highly beneficial and profitable with consistent and prompt shipping.
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