Dropshipping is one form of e commerce business where a person can operate retail business without directly owning a stock. When there is a transaction to be made, they can simply purchase the products from a third party and ship it directly to the buyer. Here, the person or merchant does not directly handle the product at all. The merchant also need not own an inventory as they do not stock the products themselves and they purchase inventory from the third party who owns the stock.
How Dropshipping E Commerce Works?
A merchant has to advertise products from manufacturer or wholesaler on their dropshipping website. Once the merchant receives order from customers on the website, order is forwarded to the manufacturer or wholesale supplier to fulfill the customer order. The difference in the two stages of payment gives profit to the merchant. But the said process is not simple and demands lot of planning and courage from the merchant’s side to make it work.
Why Is Dropshipping A Best Method?
The world has transformed into digital mode and the average number of digital buyers have increased significantly along with overall retail e-commerce sales percentage. Of the total online retailers present today, almost one fourth of them have adopted dropshipping mode of e-commerce. Dropshipping is mainly preferred because of low start-up fund required. All that is needed is a perfect PC and uninterrupted network, a directory of wholesale suppliers in the selected product niche. The second advantage is that there is no need to search for a warehouse for stocking the products and the associated investments like rent for warehouse, salary for warehouse staff; maintenance costs for warehouse, insurance charges and cost for specified storage conditions like temperature and moisture control are saved with dropshipping. Since the merchant who does drop ship does not have stocks, there is no need for extensive maintenance of an inventory.
Advantages Of Dropshipping
One can work from anywhere in dropship e-commerce and can run the show with extremely low cost while earning decent profits. They can choose any product niche that has good market demands irrespective of prior experience in handling such products with dropshipping. Another advantage is the ability of automation in dropshipping, which helps in saving time and money and ensure high efficiency. The drop ship e-commerce enlarges the geographical limitations with retail marketing and one can buy products from anywhere and deliver anywhere. There are short-term courses that help you learn the tricks of trade about dropshipping and can make you a successful entrepreneur. The course on dropship on demand helps people to start from scratch to develop as an e-commerce giant with loads of expertise to mark their name in marketing business.