What is Dropshipping?

Dropshipping is an order fulfillment mechanism that eliminates the need for a company to retain inventory on hand. Instead, the store sells the item and then sends the sales order to a third-party vendor, who then ships the order to the customer.

Advantages of dropshipping

Little investment needed

The nicest part about the dropshipping business concept is that you don't have to buy and store the merchandise you sell. You only purchase stock after a sale has been completed and the consumer has paid you. This is fantastic because it means:

  • To begin with, you don't need any money to buy stock.
  • You don't have to keep stock on hand or pay for it to be stored.

You are not out of pocket if the goods do not sell because you have not invested in 500 units that will be left unused if there are no sales.

Because of these considerations, you may establish a profitable dropshipping business without having to invest thousands of dollars in inventory up front.

Flexibility

Many modern retailers, who start their enterprises as a side hustle while working full-time employment, value flexibility. Dropshipping allows you to manage your business from almost anywhere with an internet connection, making it a great alternative for people looking for flexibility in their eCommerce enterprise.

You can run and manage your firm as long as you can interact effectively with suppliers and customers.

Many successful dropshipping businesses are really conducted from the comfort of one's own home. You may not even need to quit your work to start your own business because you can usually fit it around your current obligations.

Scalability

The truth is that growing a dropshipping business is significantly easier than growing a typical internet store.

As your order volume grows, the job falls to the supplier rather than you, allowing you to expand your firm without incurring the costs of recruiting additional people to deal with the additional work. This allows you to scale your business more easily and quickly than traditional eCommerce stores.