Dropshipping: Business, Suppliers and Products

Dropshipping is an ecommerce business model that has grown in popularity in recent years thanks to low startup costs and easy scalability. This beginner’s guide will walk through everything you need to know to launch your own dropshipping business selling products online without inventory.

What is Dropshipping?

Dropshipping is a retail fulfillment method where you set up an online store and list products for sale, but don’t actually keep the items in stock yourself. Instead, when a customer places an order, you purchase the item from a third party supplier or wholesaler and have it shipped directly to the customer.

The main advantage of dropshipping is that it’s possible to launch an ecommerce store without having to invest in product inventory upfront. Some key defining aspects of dropshipping include:

  • No upfront inventory purchases required
  • Orders are fulfilled directly by the supplier
  • Products are “dropshipped” to customers
  • Minimal handling of physical goods required
  • Variable costs instead of fixed costs for inventory

Dropshipping allows entrepreneurs to start an online retail business with minimal capital and low overhead. You can test products and launch niche stores more easily since you don’t have to buy and store all the inventory yourself.

 

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