DROP-SHIPPING EXPLAINED

 

WHAT IS DROP-SHIPPING?

Drop-shipping is a type of business model which enables a business to operate without maintaining inventory, owning a warehouse to store their products, or even having to ship their products to their customers themselves.

How it works is that the retailer ( you ) partners up with a drop-ship supplier that manufactures and/or warehouses products, packages the products, and ships them directly to the retailer’s ( Your ) customer, on your behalf. 

In simpler terms -

  • The customer places an order for a product on your online store.
  • You then forward the order and customer details to the drop-ship supplier.
  • The drop-ship supplier then packages and ships the order directly to the customer for you. Meaning you don't have to store any Inventory or ship anything out at all. 

The benefits of Drop-Shipping -

Low Start Up Cost - All you need is a domain and business name and a great website with payment Integrations so you can sell the products online.  ( which we build for you )

You do NOT have to purchase the stock upfront at all. You simply place the order with the supplier/ drop-shipper AFTER the customer pays for their order on your site. 

No packaging or shipping required - With a regular model of online retail where you stock the products yourself, you'll need packing materials, packing slips, Invoices, and of course, you'll have to send the products off to your customer, so shipping costs as well. With Drop-Shipping however, because you are not keeping the products at hand yourself, you will save money on packing and shipping. 

The Risk of Drop-shipping as a Business Model is Significantly Lower - If the business doesn’t sell products it still doesn’t lose anything, so there is little to no pressure about having to sell your inventory.

The Business Can be Run from Anywhere &  is Location Independent - No office, no warehouse, no employees and no hassles. Little to no commitment to a physical space means that you could be sitting at a beach, sipping on mojitos while still turning profits. All you need is your laptop and the internet.

There is Lots of Variety When it Comes to the Products You Want to Sell - There is a drop ship supplier for almost anything that you would like to sell! You can rely on one great product, sell several products at once or mix it up; it’s all up to you. Find your niche and there is bound to be a supplier that caters to it.

Reduced Loss on Damaged Goods- Since the shipment goes directly from the supplier to the customer, there are fewer shipment steps involved which drastically reduces the risk of damaged items while moving from one physical space to another.