What is Drop Shipping

In simple language, drop shipping is a retail fulfilment method where a seller or store do not keep any stock of products that they sell.

In this system, a customer orders and pays you for a product listed in your store. You pay the supplier after receiving money from the buyer and the supplier ships directly to the customer.

In the classic E-Commerce model, you would have to hold stock of the products you are selling and send the product yourself. Good examples of drop shipping include products that appear on numerous E Commerce platform being listed by different sellers.

This retail method has pros and cons. The pros include the non requirement of holding stock, low overhead costs, ability to reach a wide audience base, diversifying your product line, selling immediately and the ability to work from anywhere in the world.

However, keep in mind that the margins are lower, so volumes matter, you may need to align with numerous vendors and find the right suppliers, you need to cover the shipping costs and customer support.

All in all, it is a no inventory, no investment but full responsibility business.

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