Dropshipping is a retail e-commerce model in which the wholesaler is responsible for all merchandise shipments and the retailer is only responsible for obtaining new orders and providing customer service.
Forget about the logistics of storage, packaging, shipping or returns. Your andorra b2b leads only goal will be to generate sales, since the product and shipping will be carried out by your supplier.
In a sale there are two main parties: buyer and seller. This is where a third party comes in: the dropshipper or supplier.
Buyer : Purchases the product shown in your online store.
Seller : Closes the sale on their website, collects payment, and takes care of marketing, customer service, and after-sales. They do not physically have the product.
Dropshipper : Receives the order from the seller and ships directly to the buyer.
Some companies positioned within dropshipping are: AliExpress , Shopify , Megagoods , Nihao Jewelry , BigBuy , etc.
Sounds good, doesn't it? Now you know the advantages and disadvantages:
ADVANTAGES
Save time on organization management . Organizing stock and preparing it for delivery takes time. Having a dropshipper will ship, label, package, and more.
Storage . You don't need a warehouse or any other space spacious enough to store all the products you offer.
Unlimited stock . While the investment in products is unlimited, the stock is “infinite”. Your supplier, as long as it is reliable and of a considerable size, will be prepared to respond to your shipments regardless of the magnitude of the orders.
DISADVANTAGES
Competition . With dropshipping, you are selling a product that 10 or 20 other stores may be selling. Differentiate yourself with a digital strategy to attract customers to your store.
Incomplete product information . By not physically having the product being sold, sometimes the manufacturer does not provide sufficient product descriptions, exact dimensions, weight or ease of use.
Not knowing the supplier. To avoid being scammed by a foreign company, it is important to research comments/reviews from other retailers and have contact with someone inside who can provide you with more information and thus establish trust.
It is a very viable business opportunity that can help you work from home, with practically no infrastructure or investment.
With prior research, information and planning, you can set aside the drawbacks and benefit from the advantages of using Dropshipping.
