Dropshipping is the retail sales model in which sellers accept orders as they arrive without holding stock.
What is dropshipping?
Dropshipping is a retail fulfillment method where 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. This means the seller doesn't have to handle the product directly or worry about inventory management. Dropshipping has become a popular way for entrepreneurs to start an online business as it requires minimal investment and has low overhead costs.
What are the benefits of drop shipping?
One of the benefits of drop shipping is that it requires minimal capital to start. With traditional retail, entrepreneurs need to invest in inventory and warehouse space, which can be expensive. Dropshipping eliminates these costs as the seller only orders the product after a customer orders. This allows entrepreneurs to start a business with minimal upfront investment and reduces the financial risk of starting a business.
Another benefit of dropshipping is that it allows sellers to offer various products without worrying about inventory management. Because the seller does not physically handle the products, they can offer a large selection without additional storage space. This also allows sellers to quickly add or remove products from their store without worrying about leftover inventory.
In addition, dropshipping allows entrepreneurs to work from anywhere with an internet connection. Since the seller can handle the products physically, they can manage their business anywhere. This allows entrepreneurs to work remotely and manage their businesses on their terms.