Drop Shipping for Dummies Leave a comment

What is drop shipping?

Drop shipping is a new business model in which entrepreneurs start selling products from manufacturers without having to keep stock inventories of any king. Unlike traditional b2c businesses, this process of purchasing products and then selling them again without any reprocessing is what we commonly call Drop shipping.

In drop shipping businesses there are three different parts in the equation. First, we have the final client, that person who wants to buy, say, a jacket. Secondly, we have the store or the shop in the middle. Finally, we have the drop shipping company on the other end.

The drop shipping program has several characteristics that differentiate it from a classical business model. First, because in this business model the final customer will never know the existence of the drop shipper. The role of the drop shipper is to blindly send products to the customers of the online store. The drop shipper is, basically, a logistic center, an outsourcing partner of the traditional e-commerce.

Is drop shipping legal?

Yes, of course. Drop shipping is a partnership between two businesses that aim to satisfy the needs of the public. There are no illegal practices in the drop shipping model. The store will still be responsible of the customer’s satisfaction and experience, whereas the drop shipper will be responsible will be responsible of delivering the products and orders on time.

Is drop shipping worth it?

Definitely, yes. Google Trends show a huge rise on searches about drop shipping everywhere in the world. This can only mean that more people are being aware of the benefits of drop shipping and want to join the future of e-commerce.

However, as it happens in any other e-commerce company, drop shipping also requires a business plan and a marketing plan. You need to research what is the best product for your business and start making promotion plans to increase your audience and the visibility of your store.

By doing drop shipping, you can forget about some of the usual problems of having an e-commerce. For most entrepreneurs, stock and inventories are the biggest problems of their business. It requires a huge investment to keep high stock. Furthermore, the risk of having product stock is also very high. Drop shippers can forget about these difficult situations and only focus on promotion and customer service. In the end, drop shipping is about selling products online without inventory at all.