DropShipping, what it is and how it works
Posted: Sun Jan 19, 2025 8:24 am
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DropShipping, what it is and how it works
What is dropshipping ? Dropshipping is a unique way to run an e-commerce store for online sales that allows you to get started with little to no initial capital investment.
More specifically, it allows you to sell products without having to keep your products in stock by outsourcing the management of inventory and orders to third-party suppliers .
In this post, we dig deeper to help you understand what switzerland phone number data is and how dropshipping your business works , compared to a “traditional” warehouse-style business. Then, we’ll look at how to get started with dropshipping with your e-commerce.
Table of Contents view
What is dropshipping?
The dropship method is a sales method that you can use to run an e-commerce business without keeping a warehouse . It allows you to sell products online made available directly by the dropshipping wholesaler to customers. As a retailer, all you have to do is keep a catalog of products online without keeping and managing any warehouse.
Whenever a customer places an order, you will forward it to your dropshipping supplier, who will ship the products directly to the buyer. You will not have any problems with packaging or shipping. Also, you can import all the product details from the wholesaler (like Alibaba ) to your dropshipping e-commerce.
Think of dropshipping as a three-step process:
The customer places an order for €200 (product price).
You pay the supplier €150 ( wholesale price ).
The supplier ships the product to the end customer and you keep €50 (profit amount).
Dropshipping, how does it work?
What is dropshipping?
There are three important factors in drop shipping business : a reliable supplier, your online store and the customer.
Customer – After receiving an order you will receive a notification that needs to be forwarded to the supplier. You just need to pay your supplier when a customer makes the payment.
Supplier – First, you need to find a dropshipping supplier/wholesaler. The supplier will be responsible for fulfilling your order and maintaining physical inventory. One of the most popular sources for suppliers is AliExpress , but you can also find other independent suppliers ( although it will take a bit of time ).
Your dropshipping ecommerce (dropshipper) – This is the ecommerce site where the customer will place the order. You just need to upload the product catalog, including images, details and a unique description of the products. There are several ecommerce platforms that work well, WooCommerce and Shopify and Prestashop are the most popular options.
Dropshipping Method VS Warehouse Model
In an e-commerce with a warehouse you have to keep a stock of most of your products. In this model, the products are shipped from your store. Unlike dropshipping , an e-commerce website with a warehouse requires some investment since you need to always have the physical products on hand.
Ease of work
Now that we have answered the question of what is dropshipping , let's compare it with the traditional warehouse management model.
The warehouse model requires using and managing a warehouse to store inventory of items that will be sold. You may also need to hire employees to do the physical labor. In addition, it is important to insure the warehouse. Managing the warehouse is complicated.
Dropshipping , on the other hand, does not require physical storage space, as the supplier will handle the shipping directly. You can manage your e-commerce store remotely and individually. Essentially, the only things you are responsible for are picking orders and providing adequate customer service .
DropShipping, what it is and how it works
What is dropshipping ? Dropshipping is a unique way to run an e-commerce store for online sales that allows you to get started with little to no initial capital investment.
More specifically, it allows you to sell products without having to keep your products in stock by outsourcing the management of inventory and orders to third-party suppliers .
In this post, we dig deeper to help you understand what switzerland phone number data is and how dropshipping your business works , compared to a “traditional” warehouse-style business. Then, we’ll look at how to get started with dropshipping with your e-commerce.
Table of Contents view
What is dropshipping?
The dropship method is a sales method that you can use to run an e-commerce business without keeping a warehouse . It allows you to sell products online made available directly by the dropshipping wholesaler to customers. As a retailer, all you have to do is keep a catalog of products online without keeping and managing any warehouse.
Whenever a customer places an order, you will forward it to your dropshipping supplier, who will ship the products directly to the buyer. You will not have any problems with packaging or shipping. Also, you can import all the product details from the wholesaler (like Alibaba ) to your dropshipping e-commerce.
Think of dropshipping as a three-step process:
The customer places an order for €200 (product price).
You pay the supplier €150 ( wholesale price ).
The supplier ships the product to the end customer and you keep €50 (profit amount).
Dropshipping, how does it work?
What is dropshipping?
There are three important factors in drop shipping business : a reliable supplier, your online store and the customer.
Customer – After receiving an order you will receive a notification that needs to be forwarded to the supplier. You just need to pay your supplier when a customer makes the payment.
Supplier – First, you need to find a dropshipping supplier/wholesaler. The supplier will be responsible for fulfilling your order and maintaining physical inventory. One of the most popular sources for suppliers is AliExpress , but you can also find other independent suppliers ( although it will take a bit of time ).
Your dropshipping ecommerce (dropshipper) – This is the ecommerce site where the customer will place the order. You just need to upload the product catalog, including images, details and a unique description of the products. There are several ecommerce platforms that work well, WooCommerce and Shopify and Prestashop are the most popular options.
Dropshipping Method VS Warehouse Model
In an e-commerce with a warehouse you have to keep a stock of most of your products. In this model, the products are shipped from your store. Unlike dropshipping , an e-commerce website with a warehouse requires some investment since you need to always have the physical products on hand.
Ease of work
Now that we have answered the question of what is dropshipping , let's compare it with the traditional warehouse management model.
The warehouse model requires using and managing a warehouse to store inventory of items that will be sold. You may also need to hire employees to do the physical labor. In addition, it is important to insure the warehouse. Managing the warehouse is complicated.
Dropshipping , on the other hand, does not require physical storage space, as the supplier will handle the shipping directly. You can manage your e-commerce store remotely and individually. Essentially, the only things you are responsible for are picking orders and providing adequate customer service .