What is dropshipping?
December 20, 2023 customer dropshipping e-commerce inventory online marketplaces profit margins retail fulfillment third party No CommentsDropshipping is a retail fulfillment method in which a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.
The dropshipping model has become popular among online retailers because it allows them to start selling products without the need to invest in inventory upfront. This reduces the risk of investing in large quantities of product that may not sell, and also eliminates the need for storage space to hold inventory.
Dropshipping can be done through various online marketplaces, such as Amazon or eBay, or through an independent online store. However, it is important to note that dropshipping does come with its own set of challenges, such as lower profit margins and potential issues with shipping and delivery times.