What Is Dropshipping

What Is Dropshipping | How Does Drop Shipping Work? (2021)

What Is Dropshipping?

Dropshipping is a business model that enables entrepreneurs to build their own companies without the need for large capital investments, inventory, or worry about fulfillment. Rather than manufacturing products themselves and then selling them through channels like Amazon or eBay, dropshippers partner with suppliers who will ship their products directly to customers on behalf of the company. This not only saves time and money upfront but also eliminates risk because dropship businesses never What Is Dropshippinghave possession of any inventory – they simply sell what others provide. When you’re starting out as an entrepreneur it can be difficult to know which path is best for your goals. Dropshipping has proven to be one of the most reliable ways for entrepreneurs all over the world to start making money quickly while keeping costs low.

Defining dropshipping Clearer

Dropshipping is a fulfillment method where a store doesn’t keep the products it sells in stock. Instead, the store purchases the item from a third-party supplier and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.

The biggest difference between dropshipping and the standard retail model is that when you do dropshipping, you do not own or stock any of the inventory. Instead, when someone orders something from you, you buy it from a wholesaler or manufacturer to fulfill their order.

Dropshipping is a fantastic business strategy that has become increasingly popular. Dropshippers are able to offer their customers high quality products at competitive prices because they don’t have to pay for stock, shipping or storage costs. However, this retail model does come with pros and cons which you should consider before starting your own dropship business.

Dropshipping Pros:
– No upfront investment in inventory (Dropshipping allows you to start selling products right away with no investment needed. You can focus on marketing your product instead of managing an inventory system. If the business fails, at least you won’t have wasted money buying lots of items that may not sell anyway!)
– Low start up cost – Easy expansion into overseas markets by using drop shipping platforms like Oberlo (aliexpress) or Shopify Plus

Dropshipping Pros:

  • Dropshipping requires time and effort into learning & researching suppliers
  • Optimizing your listing titles
  • Figuring out shipping rates for each supplier, etc.
  • Some suppliers will demand exclusivity agreements

For the latter, we recommend Oberlo, a marketplace developed by Shopify that helps independent business owners find products to sell. With Oberlo, you can browse AliExpress and import the products that pique your interest directly to Oberlo—which is connected to your Shopify store—with the click of a button.

Want to get started today? Join our free trial training session to learn how to set up an online store using dropshipping to fulfill orders. You’ll get step-by-step instructions on how to quickly find and import trending products to start selling.

Related Articles


Translate »