What Is Dropshipping and How Does It Work?

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What Is Dropshipping and How Does It Work?

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Dropshipping is a business model that provides helpful inventory and shipping solutions for retailers and eCommerce sellers in particular.

A retail business needs a way to keep inventory accessible and get it shipped out quickly. The question is where to keep enough, but not too much, inventory yet still have it available quickly for shipping as soon as customers place an order.

 

What Is Dropshipping?

Dropshipping is a service offered by a supplier or shipper with access to products retailers want to sell. Ecommerce retailers partner with a dropshipper, who packages and ships products directly to the retailer’s customer in the retailer’s name.

 

How Does It Work?

A customer visits a retailer’s online store and places an order. The retailer forwards the order and customer delivery information to a dropshipper like WIX drop shipping, who then packages the order and takes care of all shipping and customs forms (if necessary).

 

Is It Only For Online Sellers?

Dropshipping is useful for any retailer who doesn’t want to keep large amounts of inventory on hand or deal with the details of arranging to ship. The best dropshipping services appeal to all types of retailers, like tracking and syncing and a global network of suppliers to draw from.

 

What Are The Benefits Of Dropshipping?

Dropshipping is easy to set up, allows retailers to start a business without purchasing inventory (or guessing how much is needed), and eliminates many overhead costs. Dropshipping also makes it possible for retailers to access a greater variety of inventory and ship to more locations.

 

Are There Any Downsides?

Dropshipping means slightly lower profit margins than buying wholesale, though this is offset by lower overhead costs. Dropshipping also means packaging and shipping are out of a retailer’s control, yet customers will blame the retailer for any mistakes. Working with a reputable dropshipper like WIX dropshipping is key to success.

Dropshipping is perfect for entrepreneurs who need to focus on their brand and improve margins. When a retailer works with a great dropshipper, they have space to experiment without major loss and gain time to learn more about how their business works.

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