What Is Dropshipping?
How Dropshipping Works
At this point you might be asking yourself, how does dropshipping work? Perhaps you’ve heard the term floating around on various ecommerce platforms or maybe this is one of your first times encountering the concept at all. In the simplest terms, after a dropshipper sells a product, he or she buys it from a supplier and has it shipped directly to the customer. Typically, the process works as follows. An ecommerce merchant posts products on his or her website, from which a customer places an order and pays for the item. Then, the merchant fulfills the order by placing an order for that same product from the supplier who sends it to the customer. When merchants decide to host their ecommerce shops through :facebook / Shopify / EBAY / ALIEXPRESS, apps like Oberlo make the process simpler and more streamlined by acting as the connective tissue between the supplier marketplace and the front end of the ecommerce shop from where the merchant items are displayed for sale and purchased. The app makes it easier to import products directly from suppliers into the store, and helps to manage any changes in inventory or pricing in the supply marketplace so that there aren’t any discrepancies between what is being displayed in a merchant’s ecommerce shop and the actual characteristics of the item in the marketplace.
In addition to numerous dropshipping advantages, the dropship model is extremely flexible:
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Dropshippers control their own margins. Also, dropshippers aren’t bound to a suggested retail price (MSRP) and can decide their retail prices on their own.
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Dropshippers don’t need to be established business entities before starting their online stores. Though they will need one once they grow.
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Dropshippers have access to millions of products. Instantly.
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