What is Dropshipping?

The Fundamentals of Dropshipping?

Dropshipping is a retail fulfilment method where stores don’t keep products in stock. Instead, they work with suppliers who fulfill orders directly to customers. When an order is placed, the store forwards the details to the supplier, who handles packaging and delivery.

This eliminates the need for businesses to manage inventory or invest in warehouse space. Dropshipping allows for more flexibility and lower startup costs, making it an attractive option for new entrepreneurs.

How Does Dropshipping Work?

Here's a step-by-step look at how dropshipping typically operates:

1. Partner with a Dropshipping Supplier: First, find a supplier who offers the products you want to sell. You can partner with individual suppliers or use dropshipping platforms like AliExpress, Zendrop, or Spocket.

2. Set Up Your Online Store: Next, create an online store using platforms like Shopify. You list products from your supplier at the price you choose. Dropshipping apps can automate listing updates and order forwarding.

3. Receive Orders: When a customer places an order, they go through the regular checkout process, paying you for the product.

4. Forward Order to Supplier: You then pass the order details to your dropshipping supplier, who fulfills the order. If you use a dropshipping app, this step is automated.

5. Supplier Ships Product: The supplier packages and ships the product directly to the customer.

6. Customer Receives Product: The customer receives the product, and the store handles any follow-up customer service or issues.

This streamlined process allows entrepreneurs to manage an online store without having to handle physical products themselves.

What is a Dropshipper?

A dropshipper is the individual or business that markets and sells products without holding inventory. Dropshippers create an online storefront, market their products, and when an order comes in, they forward it to their supplier for fulfillment. In short, the dropshipper acts as a middleman between the customer and the supplier.

What are Dropshipping Suppliers?

Dropshipping suppliers store, package, and ship products on behalf of the retailer. They handle order fulfilment but usually have no direct relationship with the customer. You can find suppliers through platforms like AliExpress, Oberlo, or specific wholesalers within your niche.

Suppliers are a key part of the dropshipping equation because they allow retailers to focus solely on running and growing their store.

Why Should You Start Dropshipping?

Dropshipping has several advantages, making it an appealing option for entrepreneurs:

• Low Startup Costs: You don’t need to invest in inventory or warehouses. Instead, you only pay for products when customers order them.

• Wide Product Selection: Dropshipping allows you to sell a wide variety of products without stocking them. You can quickly adjust your product offerings based on trends and demand.

• Flexible Location: As long as you have internet access, you can run your dropshipping business from anywhere in the world.

• Ease of Scaling: Scaling a dropshipping business is easier compared to traditional retail because fulfillment is managed by the supplier.