Drop shipping is a method where a store doesn’t required for the inventory it sells in stock. In other way, we can say when a store sells a product, it purchases the item from a third party make a specific amount of stock and has it shipped directly to the customer. As a result, the role of merchant is only to Pack and shipped the product never sees or handles the product.
The biggest difference between drop shipping and retailer that no need to make investment for selling the product.
The other side, the merchant purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders.
Start With Low Budget
For this need to create e-commerce store to purchase and sell the products,now have a chance to start the drop shipping business and earn thousands of dollars. Normally, procedure of retailers, have had to tie up huge amounts of capital purchasing inventory.
With the drop shipping model, you don’t have to purchase a product unless you already made the sale and have been paid by the customer. Without major up-front inventory investments, it’s possible to start a successful drop Shipping business with very little money.
Running an online business is much easier as compared to deal with physical products. With drop shipping, you don’t have to worry about:
- Drop shippers often don’t own the warehouse, but the inventory is at the supplier.
- Drop shippers don’t owning a logistic process, but the supplier takes care of the logistics.
- A broad product offering: instantly able to offer a wide variety of products on your web shop.
- Quick time to market: be able to instantly start selling drop shipping products.
Fact is that many successful drop shipping business are easy to access anywhere, either from home or from office,You can use Flexible location to run from just about anywhere with an internet connection.As long as your relations will built with customers and suppliers, you can run your business and .
Next thing is to select a product: In other hand, we can say, Only few things are required for startup,
, we show you how to start a drop shipping business in 5 easy steps:
- Choosing a profitable drop shipping product.
- Finding reliable supplier.
- Need to create sales tax ID.
- Choosing the right selling process.
- Implementing the strategy to customer procurement.
In more simple words, I explain you drop shipping works like this:
1. A customer registered on your website and the place a order for an item at retail price.
2. Then you will forward this order to your supplier on wholesale price (your margin in between wholesale and retail price)
3. The supplier ships the item directly to the customer under your business name
This means that you don’t have the need to buy/manage any bulk stock,as well as time saved and earn money.
Additionally, you are secure from unwanted risk to having bulk stock, not being able to sell all of the products, leaving you out of pocket.
This is why drop shipping is so popular – it requires minimal investment, but reaps similar benefits to traditional retail models.