01 How does dropshipping work?

by webadmin September 12, 2020

Dropshipping is a business model that allows stores to sell products without having to keep them in stock. When a store sells a product using the dropshipping business model, it purchases the item from a third-party (usually a wholesaler or manufacturer) and has it shipped directly to the customer.

The dropshipper doesn’t have to keep the goods to be sold in stock. This eliminates many of the costs associated with traditional retail fulfillment, including maintaining a brick and mortar store. Instead, the dropshipper purchases goods as needed from their wholesaler or manufacturer and sells them to the customer at a healthy markup.

Aside from reducing operational costs, the dropshipping business model gives you more time to focus on customer acquisition and marketing your own brand.