What Is Dropshipping, How Does It Work, And How To Start A Successful One

Dropshipping is a retail business model in which an ecommerce merchant sells physical products without keeping inventory in stock.

In the dropshipping business model, the retailer acts as an online storefront where customers purchase goods. However, instead of the retailer fulfilling orders, they are fulfilled by a third-party manufacturer or wholesaler.

This could be a low-cost, low-risk way to sell online because it requires no ownership of inventory or operational facilities.

How Does Dropshipping Work?

In dropshipping, customers place orders and make payments on the retailer’s site. The retailer then buys the ordered goods from the dropshipping supplier, who receives the original order information and ships the product directly to the consumer.

The customer pays the merchant, who then pays the supplier. The merchant never handles the goods. But, for the customer, the buying experience is no different from any other ecommerce purchase.

By marketing, selling, and providing customer service for the dropshipper’s goods, the retailer becomes a third party receiving a profit. As the retailer, you typically set the selling prices in this arrangement, so the final margins are up to you.

The guide below details everything you need to get started. Click below.
How to Start a Dropshipping Business in 10 Steps