Dropshipping is a kind of trading technique where store not keep the products. Its sells them in stock. Basically, when a store sale a product using dropshipping method, it purchase that item from the third party and ship directly to the customer. So we can say seller does not handle the product directly.
Main difference between dropshipping and standard selling method is that seller does not stock or own inventory. Seller purchase items from third party which are usually wholesalers or manufacturers.
How does dropshipping work on Shopify?
There are two most common methods for dropshipping on Shopify are search the supplier anywhere in the world using the supplier database via Shopify app which connect you to the thousands of suppliers.
Next, we recommend the Oberlo, a marketplace developed by Shopify that help the independent business owners to find the products to sell online. With Oberlo, you can browse items over AliExpress and import the products directly to the Oberlo, which is connected to your Shopify store by a click of the button.
As customer buy the product, you can proceed their order using Oberlo app. You are the store owner, you can check the details of the order, all are corrected then you click on the order button. The items of the orders are directly send by AliExpress supplier to the customer, wherever in the world may be.
Advantages of Dropshipping
Dropshipping is a great business method for businesspersons as of its ease model. By dropshipping you can check and run test of different business ideas within limited time, its give you learn how to select the right product for you which is high demand in the market, below are some more reason which describe that dropshipping is such a popular model
Less capital is required
One of the biggest advantage of dropshipping is that you can launch an ecommerce store without investment of thousands of dollars on stock. Usually, retailers and you are tie up with each others for the process. In dropshipping you don’t purchase the item unless you have already made a sale and customer have been paid for that. Summarizing with very low budget you can start business with the help of dropshipping method.
Easy to get started
If you are planning for ecommerce business then dropshipping model make your difficulty easy as you don’t have to deal with the physical products. As you are worried free from managing or paying of warehouse charges, packing and shipping of orders, tracking inventory, handling returns, continuously ordering products and managing stock level.
Because there is no burden of purchasing inventory or managing warehouse, your expense are low. Most of the successful dropshipping stores are run on home base business, just need of laptop and some very few expenses. As you grow costs will increase but still low are compared to those traditional physical businesses.
Dropshipping business can be run anywhere with an internet connection. You have to just communicate with suppliers and customer, all your business run and manage easily.
Wide selection of products to sell
As you don’t have to purchase inventory for sell, you can offer wide range of trending products to you potential customers. It an item is stock by the supplier then you can list on sale on your online store with no additional cost.
Easier to test
Dropshipping gives you an opportunity of test for both condition either you are going to launch new store and adding products and try them to sale or you have old one and adding items on daily basis and given promotions and discounts to you existing customers.
Easier to scale
In normal business process if you get three orders, you will need to do three time work. But in dropshipping all the work load is on supplier, most of the work process is done by supplier and you have to bear just few pain of work.
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