How does drop shipping work?

I will discuss below the Drop shipping business model and how it works. If you start from scratch, quickly results can already become visible. After half a year you can see significant results!

Firstly, before I go into details How to do it, let’s bring forward the definition of Drop Shipping:

Drop shipping is a retail fulfillment method in which the retailer does not keep goods in stock but instead directly transfers customer orders and shipment details to either the manufacturer, another retailer or a wholesaler who then ships the goods directly to the customer ”

What is the advantage of Drop shipping in comparison to the “standard way of eCommerce”:

The biggest advantage pro drop shipping, is that the drop shipper does not (own) any stock. Instead, the merchant purchases inventory as needed from a third party, this can be a wholesaler or manufacturer, to fulfill orders. So:

  • Drop shippers often don’t own the warehouse, but the inventory is at the supplier.
  • Drop shippers don’t owning a logistic process, but the supplier takes care of the logistics.
  • A broad product offering: instantly able to offer a wide variety of products on your web shop.
  • Quick time to market: be able to instantly start selling drop shipping products.

Why start with dropshipping?

This is exactly as your questions is… ‘with only your laptop…’. It has Low start up costs and can easily scaled up! Since you don't have to hold inventory, the start up investment is low.

Of course, as in any other business, it’s not super easy and there is a lot of work to be done including the necessary headaches… This is step by step procedure to take in order to start drop shipping:

1. Choose a product to sell
Firstly, decide what products to sell. There are many variables that should be considered before deciding on a product to sell. To get inspiration, you can just go to a standard shopping mall or building materials market, visit an industry park and see what kind of factories there are..

2. Locate a supplier who will drop ship for you
Find a supplier through your network, and preferably in your neighborhood. Or just visit the local trade fairs and go hunting for the perferct products!

3. Set up a webshop, drop shipping account and organize with the Supplier
You can set up drop ship accounts on several providers (Shopify, etc). Also you can promote your own webshop (if you can arrange low cost webdesign, this however is not the priority). Then contact the company that can supply the products and set up a reseller account and sign an agreement with them. I always used this professional Drop Shipping Agreement.

4. Sell and advertise on online markets such as eBay webshop, etc
If you do all this correct with the correct calculated margin, then the more leads you generate, the higher your chances are that you find buyers and get commissions.

5. The Product Sells
Great news: your first products are sold and your customer pays you with a paypal instant payment. We highly recommend to use instant payment methods, such as Paypal or Alipay. This allows the customer to pay you faster, which lets you place the order with the dropshipper faster, which gets the product to your customer faster.

6. The Order With The Dropshipper
After your customer has paid you, you should contact the dropshipper immediately to order the product on your customer’s behalf. The dropshipper then ships the order to your customer under your name.

7. Follow up after the sale
This is where many new e-business people drop the ball. Just because your customer has paid you and you’ve placed the order with the dropshipper does not mean that you are out of the loop. Quite the contrary, if there are problems with the order you are the one that will be held responsible in the eyes of your customer be proactive in your customer relations. Follow up with your customer to let them know that the item has been shipped. And offer them personal contactt in case of problems, it’s good to let the manufacturer handle it, and forward a personal contact information to the client, or let the manufacturer contact the client directly.

How to set up a drop shipping strategy!

Follow the Drop Shipping Strategy Model

The ideal supplier to cooperate with?

The ideal supplier to partner with:

  • Needs to be reliable and needs to produce quality products;
  • That don’t have a lot of business online yet;
  • They have to be open for innovative ways to do his business, and wants to outsource this online marketing tasks to you, and who will not try too;
  • When your supplier has your products on stock;
  • Then need be ready for growth for his company;
  • They are able to ship goods worldwide (much bigger market);
  • Needs to ship your product frequently, and max. once a week. This is important, because your customers wants to receive the products as soon as possible;
  • Has a showroom to show its products;
  • Can provide customer support for you, when you receive questions from customers;
  • Can pay your commission on a frequent basis.

Hope this information finds you well!

Best, Peter

Want to learn more you can check out this blog: The Drop Shipping Expert guide – Business templates blog

19 Replies to “How does drop shipping work?”

  1. Here’s how the drop shipping Process works:

    A. The buyer orders a product from your store.

    • You could have a brick-and-mortar store where you have sample items for display or product catalogs for customers to choose from.
    • Or, you could reach more people by having an eCommerce website where your customers can order products.
    • Or, you could list your products on eCommerce marketplaces like amazon, ebay, etsy, flipkart.

    The customer pays for the order he places with you.

    B. You then forward the order details, manually or automatically, to the supplier.

    Ideally, this supplier is a manufacturer or a wholesaler so that you can earn a good profit on the difference between the retail price and the price you buy it from the supplier.

    C. The wholesaler charges you for the product and ships the product directly to the customer.

    However, the shipment would bear your logo and not supplier’s.

    Thus, the wholesaler is not even known to the customer.

    Here’s a good article if you want to learn more: What is Drop Shipping? How Does Drop Shipping Work?

    Here’s a good video by Shopify (company) explaining drop shipping.

    PS: If you are into drop shipping and looking for an order management system, you should heard EMERGE App, Drop Shipping Inventory Management Software

    PPS: its free to use. I work with EMERGE App.

  2. What is Dropshipping?

    In short, you can earn the difference by selling Dropshipper products on ebay or on your own website through your own marketing skills, channels, technologies, or resources. Does that sound like a normal way of selling goods? The difference is that you do not need to first cushion the purchase, nor do you need to rent a warehouse to store these products. Your focus is on the marketing of your own website, or you want to do everything you can to be a product expert.

    How does it work?

    • Seller zeroes down on a product that he/she wants to sell and a wholesaler/drop-shipper who can supply the stock on-demand
    • List the products on online stores
    • Once order received, seller forwards the details to wholesaler/drop-shipper
    • Wholesaler ships the order directly to buyer

    when you are doing this kind of business, please pay most attention on the delivery service and find the most reliable supplier from.

    You can start your search for the right partner on:

    B2B & B2C marketplaces such as Alibaba, 1688, Aliexpress, Amazon, eBay where you can find many supplier.

    • supplier directory
    • Look around in the local wholesale market or small retail stores
    • Personal/professional contacts
    • Trade & business magazines, online business publications
    • Knowledge-sharing sites like Quora

    I would recommend a tool named ShopMaster to you.

    Recently, I was using “Shopmaster”(shopmaster.com)to scrape and import products from Aliexpress/Alibaba/1688 to my eBay, Amazon, Wish & Shopify stores.

    Here is the steps I have done by one tool named ShopMaster(shopmaster.com)(e-commerce platform Aliexpress as example):

    1:Go to Aliexpress , contact the supplier and import the product by

    ShopMaster Chrome Extension

    2、Find the imported product on ShopMaster , and then edit & publish the product on differet sale channels, like eBay, Amazon, Shopify, Wish.(Shopify as example )

    Visit ShopMaster Tutorials can also help you get started more quickly:

    Import products from other sites like Aliexpress, Banggood, Amazon etc., to your online stores.

    If my reply is helpful to you, please click the [Upvotes] button in time.

    Your [Upvotes] is the driving force of my progress.

    Thanks~

  3. So lets dig into whats Drop shipping first.

    What is Drop Shipping?

    Drop shipping is a business method where the retailer ships a product directly from a third-party to the customer. This third party could be a manufacturer, a wholesaler or another retailer. What this means is that unlike a traditional retailer, you never stock the products you’re selling. You only buy products when they are needed, which are then sent directly to the customer.

    How does Drop Shipping work?

    Drop shipping follows a simple supply chain. The buyer orders a product from your store. You could have a brick-and-mortar store where you have sample items for display or product catalogues for customers to choose from. Or, you could reach more people by having an ecommerce website where your customers can order products. The customer pays for the order he places with you.

    You then forward the order details, manually or automatically, to the supplier. Ideally, this supplier must be a manufacturer or a wholesaler so that you can earn a good profit on the difference between the retail price and the price you buy it from the supplier.

    The wholesaler charges you for the product, and ships the product directly to the customer. However, the shipment would bear your logo, and not the supplier’s. Thus, the drop shipper is not even known to the customer.

    How is Drop Shipping Advantageous?

    • No Investments Needed
    • A Greater Range of Products
    • Scalability

    If you want to know more about dropshipping check out our recent blog post: http://emergeapp.net/drop-shippi

    PS: Check out EMERGE App, a complete end to end inventory solution for drop shippers. We have First user FREE unlimited time.

    Disclaimer: I work with EMERGE App

  4. First let get define Dropshipping:

    Drop shipping is a simple concept of selling a product. When an order is placed by a customer, the retailer passes on the customers order information to the wholesaler or supplier who then packages and ship the product to the customer.

    Image source: Orderhive

    Let’s move on working of Dropship Model (retailers point of view):

    Step – 1 Firstly you open a web store with a shopping cart and accept credit card on your site.

    Step – 2 You find manufacturer or supplier who could drop ship the product.

    Step – 3 You open an account with the drop shippers you choose.

    Step-4 You receive product images and information from the supplier and upload them on your web store.

    Step – 5 When an order is placed on your web store by a customer, your store charges them through credit card including shipping fees.

    Step – 6 You then contact the supplier via phone or email sharing the customer's order, name and address.

    Step – 7 Once order information shared with your supplier, they will pack and ship the product to your customer.

    Step – 8 The drop shipper charges you the wholesale price including shipping fee. You have already passed the shipping charge on to your customer, so the shipping costs you nothing.

    Some benefits of Dropshipping

    • No need to pay for the inventory upfront
    • No need to have an in-house order management and Inventory Management System
    • If the product doesn't sell, you never have to buy it
    • No packing, labeling and shipping cost applied,
    • Not there is a need to built a Shipping Management system
    • You purchase products at wholesale price and set your own retail price.

    Some drawbacks of Dropshipping model

    • Fraudulent Dropshippers
    • Processing merchandise is not easy
    • Order Tracking is not easy
    • Thin Margin line
    • Competition level is High
    • A retailer has to bear the loss of defective shipped goods

    To know more check this articles about dropshipping:

    How dropshipping business works?

    Dropshipping cons every retailer should be aware of

  5. I have attempted to answer your question by painting this brief picture. I hope, I am able to do justice to the concept.


    Drop Shipping is when the ordered product is shipped from the vendor instead of the retailer warehouse.

    In the above scenario, a user orders a product from an online retailer___.com. The retailer typically would fulfill this order by letting its warehouse know the customer address and the product is delivered to the customer. The customer may have opted to pick it from a store or just deliver at home.

    With Drop Shipping, the retailer has  an agreement with a third party (vendor) who upon receipt of the order will send the order to preferred location mentioned by the customer. In the above scenario, the item could be shipped to the store and the customer can pick it up from the store, or the item is delivered to the home.

    Ship from Store, may be an overkill, but there are times when the item is requested for Store pick up and it is either late or unavailable in such cases a good practice is to ship a similar item to the customer from the store (or warehouse) inventory to ensure that a sale is not lost.

    Some of the obvious advantages are
    1. No need to manage or stock inventories
    2. Assortment expansion
    3. Easy to Scale up/Down

    Disadvantages
    1. Potential Quality control issues
    2. Reduced margins

  6. Drop shipping is a method used to sell merchandise you do not have in your inventory. You, as an e-Commerce or brick and mortar retailer, list an item for sale. When a customer places an order with you for that item, you send the customer order details to the vendor, distributor, or wholesaler that you purchase the item from. Your vendor then processes your order and ships the item direct to your customer for you.

    • The drop shipper should use your company name on the shipping label and packing list.
    • The drop shipper will have quoted a price to you for the cost of the merchandise plus the cost of handling and shipping.
    • When you place your order with the drop shipper you will normally pay for the item using a credit card or other type of electronic payment.
    • The drop shipper should send you a tracking number after they ship so you can notify your customer.
    • The drop shipper should keep you informed about their inventory levels and price changes so you can remove the item from sale or change price as required.

    The biggest benefits of drop shipping are no need to invest in inventory, no need to have a warehouse or staff to pick and pack customer orders, and the ability to test market various products with no investment.

    The biggest drawbacks of drop shipping are the higher price you have to pay your supplier for the convenience of shipping small orders for you, the lack of control over your customer service if the drop shipper should be slow in shipping or run out of inventory, the low profit margins you should expect because of the extra cost you pay your supplier, and most of all, the competition you will face.

    Remember, drop shipping makes it very easy for you to begin to sell online, but, it also makes it very easy for everyone else too. When you look at selling platforms like Amazon, you will see item after item selling the exact same product, using the exact same selling copy and photos supplied by the drop shipper, at very similar selling prices. Competition for sales is fierce, and the potential profit margins are low.

    Companies like Amazon and eBay don’t care how many sellers list exactly the same products. They get paid the same selling fees no matter who the final seller is.

    If you want to start online selling here are some of my recommendations:

    1. Use drop shipping to test the market. Try and find products that you know something about. It does make it easier to sell and handle customer service if a customer has an issue.
    2. Look for that Niche category. A niche can be a unique product, or it can be a unique way to sell a product. Maybe you notice other sellers are really not telling their customers the best benefits of a product, or the best way to use the product. Try and find unique or low competition products or markets where the competition will not kill you with low prices.
    3. Write unique selling copy and take high quality photos. Try not to use the exact same copy everyone else uses. You want your presentation to attract attention and look different from your competition.
    4. Once you find a product that has good potential, find a supplier that you can buy larger quantities from and inventory yourself. You will probably be very surprised to find out just how much extra handling charges you drop shipping supplier adds to the cost of goods. You can usually ship much cheaper than the drop shipper charges you.
    5. Be very wary of any company that wants to charge you a fee or a monthly subscription to get exclusive access to lists of drop ship suppliers or products. Many of these companies that make claims of fantastic money making opportunities, actually make most of their money selling subscriptions or tutorials. They will sell to anyone who pays their fees so there is no exclusive in these types of programs at all.
  7. Dropshipping is a service offered by (some, not all) Wholesalers. When you use a Wholesaler who offers Drop Shipping you don't have to worry about stocking or shipping products. Instead, when you get an order from a customer, you contact your wholesaler and they ship it to your customer for you. This means you, as a retailer, can sell a variety of products without ever having to stock any inventory whatsoever. This makes drop shipping very appealing for new, small, home-based online businesses.

    How Drop Shipping Works:

    No matter where you plan to sell products online if you are starting a business selling products from home then you probably don't want to carry much, if any, inventory. Most people who are starting their first online business via auctions or online stores don't have a lot of money to buy a bunch of products or the space to warehouse and store the products they want to sell online. This is where working with a real Dropshipper will save you a ton of money.

  8. What is Dropshipping?

    People who sell products, or “retailers”, purchase products from a wholesaler or brand. Traditional retail, means you purchase products in bulk from a wholesale distributor to stock your shelves directly, and you sell those items to your customer.

    Getting Started Dropshipping

    I work at Inventory Source- we are the leader in DropShip Inventory Management. We literally have everything you need to get started, and this will be your “own” business.

    When you sign up with an account with us you have access to over 100+ trusted and vetted dropship suppliers….There are a couple of issues when it comes to dropshipping 1. Finding a trustworthy supplier (we solve that) 2. Finding a product. (this is actually YOUR own idea) but we can give you tons of great ideas! You need to find a product to dropship that gives value back to their customer- but not only that you want to find a product that is so good your customer is going to want to come back to your store…3. marketing your website & gaining enough traffic so you can gain sales (however Amazon and Ebay is a great place to start out)

    We can help with all of this! When you create an account with us you have access to all of our dropship suppliers. We can then help automate your product source once you come up with that amazing product and 3. We can help integrate your store! We even have an option where you can purchase a website from us called the Turnkey Website which is preloaded and preconfigured for you!

    Want to learn more? Sign up for a free account today!

    Sign Up Free

    Questions? Feel free to reply back! Good luck!!!

  9. Drop ship, “pack and ship”, “direct fulfillment” – they all mean the same thing. A supplier will ship the item to your customer for you, and you never have to handle the product. Drop shipping allows the reseller to focus on marketing the business and eliminate the hassle, time, and cost of dealing with the actual products they are selling. I wprl wit AliExpress, so I’ll explain you on it.

    You can get the products from the supplier who you can find on AliExpress. Once you have your website up and running and filled with products from your chosen suppliers, it is time for business. When a customer buys a product from you, you will accept payment for the product for your retail price and shipping costs. Once you have received the funds, you place the order directly with the seller from AliExpress.com. This is typically a usual online order at AliExpress.com. The seller will then charge you for the cost of the item and ship the item directly to your buyer. That’s it! You have just sold an item at your set retail price and processed the order for your customer.

    You can read more about starting dropshipping buisness in AliDropship guide – AliExpress Dropshipping Guide.

  10. Drop shipping : Drop shipping is a store arrange organization system in which the retailer does not keep items in stock but instead trades customer solicitations and shipment inconspicuous components to either the creator, another retailer, or a wholesaler, who by then transports the stock direct to the customer. As in retail associations, most of retailers have their advantage on the impact between the rebate and retail cost, however a couple of retailers pick up an agreed level of the arrangements in commission, paid by the wholesaler to the retailer.

    In case you are extraordinary at offering and in case you have picked the right thing which changes over well, by then the sky is simply most remote point. Furthermore, this is the primary arrangement of activity open that does not require any wander and bring advantage if the system is executed fittingly.

    Shopify drop-shipping is by a wide margin the least demanding and most easy to use for newcomers who isn't a tech-savy and have no coding knowledge by any means. You can construct your own particular site by altering it. You can begin a without hands online business with Shopify.

    I suggest to one of the shopify app “Aliexpress Dropshipping” . This app is used to import items from Find Quality Wholesalers, Suppliers, Manufacturers, Buyers and Products from Our Award-Winning International Trade Site. Wholesale Products from China Wholesalers at Aliexpress.com. to your shopify store.

  11. The process of drop shipping is when an eCommerce retailer partners with a wholesale distributor who stores and ships their inventory for that retailer. It is a re-seller agreement and the drop ship supplier also uses the retailer's branding.

    In order to get started with drop shipping, the eCommerce retailer must:

    1. Register with the IRS to receive their free EIN.
    2. Determine which product or products they want to sell based on their familiarity and price range.
    3. Sign up for a free account with Inventory Source to gain free access to our Inventory Browser Tool which allows you to search for suppliers based on pricing, product catalog, re-seller agreement, etc.
    4. Create an account on eCommerce marketplaces to start getting your drop ship business off of the ground!

    For more info on how drop shipping works, check out our Resources & Guides section!

  12. At this point you might be asking yourself, how does dropshipping work? Perhaps you’ve heard the term floating around on various ecommerce platforms or maybe this is one of your first times encountering the concept at all. In the simplest terms, after a dropshipper sells a product, he or she buys it from a supplier and has it shipped directly to the customer. Typically, the process works as follows. An ecommerce merchant posts products on his or her website, from which a customer places an order and pays for the item. Then, the merchant fulfills the order by placing an order for that same product from the supplier who sends it to the customer. When merchants decide to host their ecommerce shops through Shopify, apps like Oberlo make the process simpler and more streamlined by acting as the connective tissue between the supplier marketplace and the front end of the ecommerce shop from where the merchant items are displayed for sale and purchased. The app makes it easier to import products directly from suppliers into the store, and helps to manage any changes in inventory or pricing in the supply marketplace so that there aren’t any discrepancies between what is being displayed in a merchant’s ecommerce shop and the actual characteristics of the item in the marketplace.

    Read More

  13. It is actually not all that hard.

    You go to a website. BobsDiscount dot com. You see something you like. You put it in your cart, and you pay for it.

    Except BobsDiscount doesn’t actually have a warehouse. They don’t have any actual stock at all. When you placed the order for the item, BobsDiscount took your money, and immediately ordered that item from ANOTHER company…. DropShipperInc dot com. Now… BobsDiscount pays for it, and DropShipperInc puts BobsDiscount’s label on it, and DropShipperInc ships it to you.

    You pay Bob. Bob pays the drop shipper. The drop shipper sends you your product because they are the ones that actually have it. Bob is just a middle man.

    If you are asking yourself why you didn’t just get it from the drop shipper directly… well… some of them don’t sell direct. They sell to companies like BobsDiscount, because they charge Bob just for the Privilege of drop shipping for them, but they sell to him at a discount due to volume of sales.

    So that’s drop shipping. Middleman Finances.

  14. When a sale is made, you want your site to automatically notify the supplier.  Different suppliers may have different preferences for how they would like to be notified. This is likely just an automated e-mail from your e-commerce plug-in, probably WooCommerce, that provides order details to the supplier.  Name, address, items ordered.

    I write in greater detail below if you are more curious.

    Zach Pinnell's answer to When it comes to dropshipping, is only one product meant to be sold?

    Zach Pinnell's answer to How can I start dropshipping?

    More great, related content to be found at blogtojob.com

  15. Drop shipping is when you contract with a retailer or wholesaler to send products directly to third parties on your request.

    For example, you have an e-commerce site where customers make purchases, but you don't wish to maintain your own warehouse and buy the goods needed in advance, before the orders are placed. You get a drop-shipping agreement with your wholesale supplier, and then when customers make purchases, you forward them to the supplier, who then ships the products to the customers directly. The customer sees the product as having been shipped from your business, the customer pays you, and you pay the supplier some amount smaller than what the customer pays you.

    1. Find a supplier. I personally have been using Online Shopping for Cool Gadgets, RC helicopter & Quadcopter, Mobile Phone, Fashion at Banggood.com for years and I have had no problems what so ever.
    2. Select products and find the best selling ones. You can find the best selling products here: Directory of Wholesale Companies and Dropship Suppliers
    3. Choose a selling platform. Your platform could be Ebay, Amazon, or even your own website.
    4. Manage your listings. Make sure your listings are proffesiinal and have all the information on the product. Keep track of sales and send them to your supplier right away so they can ship it as soon as possible.
  16. What is drop shipping?

    Drop shipping is a fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer.

    Instead of purchasing a large amount of inventory, you simply partner with a drop shipping supplier and list their merchandise for sale. Then, once you receive an order you forward it to the supplier for fulfillment. The supplier will ship the product directly from their warehouse to your customer, and charge you only for the price of the shipped item.

    What are the benefits of drop shipping?

    The drop shipping model has a number of advantages:

    Lower Capital Requirement: With drop shipping, you don’t need to invest thousands of dollars in inventory. Instead, you only purchase a product when you have an existing order to fill.

    Wider Product Selection: When you don’t have to pre-purchase all the items you sell, you can offer a significantly larger number of products to your customers.

    Reduced Risk: Without thousands invested in inventory, the risk involved with starting an online store is dramatically reduced. If things don’t work out, you aren’t stuck with thousands in inventory you have to sell at a loss.

    Location Independence: Because you don’t have to worry about fulfillment or running a warehouse, it’s possible to run a drop shipping business from anywhere with a laptop and an internet connection.

    Highly Scalable: Because you don’t need to manually fulfill each order, it’s relatively easy to scale a drop shipping business.

    Is drop shipping a profitable business model?

    Like all businesses, success and profitability rely on a number of variables. But when done correctly, it’s possible to create highly profitable online businesses with drop shipping. Drop shipping isn’t a magic formula – and real success takes significant work and time – but it’s a viable online business model with very low risk. Drop shipping was the model I used to start my online business.

    How much can I make with drop shipping?

    Again, like all businesses, profits and success range widely based on a number of factors – most notably, the commitment and dedication of the business owner and the niche selected. But with a long-term commitment, hard work and the right approach it’s possible to create a drop shipping business that provides a six-figure income.

    A business of this scale will take time to build – likely years – but it’s definitely possible. And once a drop shipping businesses is up-and-running, it’s fairly straightforward to automate and/or outsource most of the day-to-day aspects of the business.

    What kind of profit margins can I expect with drop shipping?

    Profit margins will vary greatly depending on the products you sell. For expensive electronics, margins are thin and will likely be in the 5% to 10% range. But for low-priced accessories, margins will often be in the 100% range.

    Your margins will also depend heavily on your ability to offer value to your customer, which allows you to charge a premium price over your competitors.

    Where do people sell drop shipped products?

    People sell drop shipped products just about everywhere! Many sales on eBay and Amazon are fulfilled through drop shippers, as are items on thousands of eCommerce sites, especially smaller ones.

    And even the big boys utilize drop shipping to expand their product catalog and offerings. It’s likely that large companies like Sears and Home Depot utilize the drop shipping model for some of their less popular items. This allows them to offer a broad selection while limiting the inventory they have to maintain.

    While it’s possible to sell drop shipped items in a number of ways, creating your own eCommerce site offers the best chance of building a scalable, profitable and successful drop shipping business in the long run.

  17. Drop shipping is just another way of running an on line store, the difference however is that you don't need to have a warehouse to actually store the inventory, but the drop shipper itself will be accountable to store the inventory and ship it directly to the customer's door. As someone places an order, you simply need to buy the product from Amazon or from any other dropshipper and put in the shipping address of your customer. Thus, the product will be delivered directly to the customer from the dropshipper itself.

    How much money can you actually make?

    The amount of money you make depends upon two critical factors –

    1. Selling price of your item

    2. What price your dropshipper sells the same item at?

    What advantages does dropshipping have?

    1. No Upfront Costs

    The biggest advantage of running a dropshipping business is that you don't have to buy a warehouse to store the inventory. In concise, your overhead expense is reduced to a tremendous extent in that case. You really don't have to be worried about paying for the inventory upfront or restock the inventory when it is sold.

    2. Makes Shipping Easier

    It is somewhat tough to ship all the heavy stuff that need to be delivered. In fact, most of the items that are dropshipped are bulky which may add into an extra expense for you. Whereas in dropshipping, all shipments will be done by the dropshipper so shipping is never a headache for you.

  18. ok, so here's my input;

    • Identify what kinds of products [supplier's too] you want to sell on your eCommerce website.
    • Get a robust and efficient, order management software with seamless channel integration implemented. [*] – I'm hoping that just like today's customer desires & expectations, you would be cross selling the products on your website, Facebook stores, Twitter buy now button [powered by Stripe Relay – Introducing Relay] and many other channels.
    • Evaluate the order management software on Drop Shipping workflows, customer usually gets annoyed if the product is not delivered on time whether it has to be fulfilled by the supplier or the retailer. The software should have an ability to automatically select the preferred drop shipper and send him all the relevant details about the order. Let say for example;
      1. Invoice receipts
      2. Packing Slips
      3. Shipping Labels.
    • If these things are ready, the supplier only has to pack the product and send it to the customer. The effort on supplier is itself cut by huge.

    Hope this helps!

    Disc- I work for Fulfil.IO- Multi-channel Retail ERP

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