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. As a result, the seller does not handle the product directly.
How Dropshipping Works:
- Customer places an order: A customer places an order on your online store.
- Order forwarded to supplier: You forward the order details and customer information to the supplier.
- Supplier ships product: The supplier directly ships the product to the customer.
- Profit: You keep the difference between the wholesale price paid to the supplier and the retail price charged to the customer.
Advantages of Dropshipping
Low startup costs: No need for inventory or warehouse space.
Wide product range: Offer a variety of products without handling inventory.
Flexibility: Easily add or remove products from your store.
Focus on marketing: Spend more time on marketing and customer acquisition.
Disadvantages of Dropshipping
Limited profit margins: Competition can be high, leading to lower profit margins.
Inventory issues: Suppliers might run out of stock or experience delays.
Shipping times: Longer shipping times compared to having your own inventory.
Less control over customer experience: Limited control over packaging and shipping.
Start sourcing valid professional emails.
Prove your prospecting KPIs. Meet your sales quota.