In the past decade, online selling has emerged out as a powerful platform. The online sale attracts millions of buyers and sellers all over the world. The market of online sellings is so massive that today’s online selling platforms are making billions by providing a platform for buyers and sellers to do online selling transactions. With more people today looking to buy products online, the trend of online shopping continues to grow with impressive momentum. The potential to make good money through online sales is such that some of the world’s top sellers only sell through online platforms.
What is Dropshipping?
A general online order requires an online user to visit an internet store to pick the product and place the order. Once the order is in the system, the seller will pick that order, pack the merchandise and ship it to the buyer’s address. While the process seems simple, it has its complications. With some online sellers selling thousands of units daily, it is not easy to manage volume shipments. In contrast, big online businesses can hire helping hands to maintain delivery and inventory; a small retailer struggles to manage volume orders online.
Likewise, if you look at big massive sellers, they have the capital to invest in stock and maintain inventory in volume. Small sellers cannot hold many inventory items because of a lack of funds, and they can risk losing the order if they do not have the supply ready with them. Finally, new sellers who have limited finance and capability look for more accessible online selling options such as dropshipping.
The concept of what is dropshipping is simple. Instead of buying any supplies, you ship the merchandise directly from the supplier to the buyer. In other words, you become the middleman in the transaction. Without holding any inventory, you list the products on your online store that is available with your supplier with whom you sold a seller agreement. You price the product at a price higher than what the supplier is charging you. When someone buys the product from you, it will come in your cart from where you will send it directly to the supplier to ship. The shipment of the product will be something that the supplier will take care of entirely. You will keep your margin on sales as profit.
What is dropshipping? You should go for this option if you do not have the funds to maintain the inventory, or at the start, you want to focus on building your store rather than looking after shipment hassles.