Updated: Mar 11, 2020
Dropshipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers its customer's orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. As in retail business, the majority of retailers make their profit on the difference between the wholesale and retail price, but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer.
Benefits of dropshipping:
1. Increase customers
As online business owners, you will be able to indirectly expand your market and reach more customers.
2. Save on money, time and effort
With dropshipping, retailers order from manufacturers when customers already bought the product. It lessens the burden on retailers; at the same time, less effort for the manufacturers to find customers.
3. Increased Wholesale buyers
Wholesale buyers will be more likely to partner with you when you are a dropship wholesaler. Buyers do not need to a warehouse and stock inventories since you will be the one to ship the products directly to their customers.
The dropshipping model offers flexibility that would not be possible without it. Retailers can run the business anywhere and anytime as long as they have Internet connection.
In business, being able to multiply your money, time and effort is a form of leverage. By offering dropshipping to customers, you’ll be able to prioritize on establishing relationships with these buyers.
We recommend the following:
Top dropshipping suppliers of original US/EU products. Spocket allows you to choose the best products to sell from thousands of dropshipping suppliers all over the world.
AliDropship is a WordPress plugin that turns your website into a dropshipping store that can import products from AliExpress.com. The plugin has a ton of features to include unlimited product importing, unlimited automated order fulfillment, pricing automation, auto updates product information, and much more.