Dropshipping - the main tool of ecommerce

01/11/2020
by Stan Bro

Every day the number of online purchases and sales increases exponentially and this is very easy to explain. To sell goods, the owner of a traditional store needs to have a staff of sellers, storage facilities, and trading equipment. To arrange delivery to the store, you need a driver (and a car) or well-established logistic relations with the supplier. All this creates difficulties for both store owners and managers of trading enterprises, as well as customers. Online commerce is devoid of all these problems.

Dropshipping (translated from English as “direct deliveries”) is a method of managing trade flows coordinated by an intermediary seller (dropshipper) without intermediate storage of goods in its warehouse: the goods are shipped from the enterprise directly to the buyer immediately after receiving the order. For the organization of dropshipping there is no need to invest huge sums of money in arranging a retail outlet and maintaining the staff of maintenance personnel, it is enough to create an online store, the face of which will be its website.

How does the dropshipping system work?

Modern manufacturers of goods - enterprises and firms today are not engaged in retail sales. This function is taken over by their dropshipping partners, who carry out product promotion through marketing and receiving orders from customers. The intermediary-seller transfers all information about orders to the manufacturer of the goods, which transmits to the buyer. The profit of the dropshipper is obvious - it is formed due to the difference between the wholesale and retail price of the goods. You can order an online dropshipping store from us.

Dropshipping benefits for reseller

  • for the organization of dropshipping business there is no need to maintain additional staff, rent premises and purchase retail equipment. To do this, just create a website - a business card, a "showcase" of an online store;
  • the complete absence of financial risks - you do not produce, purchase or send goods to customers. The manufacturer is engaged in this;
  • independently set the retail price of the goods;
  • Form your own base of suppliers and customers.

The advantages of dropshipping for a manufacturer of goods

  • lack of advertising costs and search for potential buyers;
  • all communications with the buyer are carried out by an intermediary, the manufacturer only packs and sends the goods.

Dropshipping for buyers: always a direct benefit

  • there is no need to travel around the city in search of the necessary goods, just go to the website of the online store and choose what you need;
  • lack of transport costs for delivery of goods - they will bring him directly to the apartment;
  • the ability to return or exchange within the agreed period.

Cons of Dropshipping: Pitfalls

Despite the undeniable advantages, it should be said about the minuses of dropshipping trade flow management:

  • unscrupulous suppliers: that is why you should start an online business only with reliable partners;
  • Dropshipper is responsible for defective merchandise and delivery problems. It must be possible to reimburse funds to the buyer and return the marriage to the manufacturer;
  • dynamic site: its constant updating, replenishment with new goods and exclusion of already sold positions.

Today, many online stores operate according to the dropshipping system: there are special sites and catalogs that host all the necessary information about goods and suppliers. Still thinking about creating an online store? Get started now: dropshipping is a promising and profitable business!