Definition of Dropshipping
Dropshipping is a retail method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t handle the product directly.
How Dropshipping Works
Dropshipping is a streamlined process that involves three main steps from order to delivery:
- Customer Places Order: A customer orders a product from your online store.
- Order Forwarded to Supplier: The order is then forwarded to your dropshipping supplier.
- Supplier Ships Product: The supplier ships the product directly to the customer under your store’s name.
Benefits of Dropshipping
Dropshipping offers several benefits that make it an attractive option for business owners:
- Low Startup Costs: You don’t need a large investment to start, as you don’t buy inventory upfront.
- Flexibility: Run your business from anywhere with an internet connection.
- Wide Product Selection: Offer a variety of products without worrying about storage space.
- Reduced Risk: Since you don’t stock the product, there’s less risk of excess inventory.