What is dropshipping?
Dropshipping is a trading method in which the store owner is an intermediary between the supplier and the client, and the goods are sold directly from the manufacturer. This business scheme is characterized by a low entry threshold, since you do not need to have a large amount of working capital in reserve.
In fact, this is the easiest type of trading for the owner of an online store, in which no investment is required to run a business. The thing is that when working on dropshipping, you do not need to purchase products and create a warehouse for their storage, all trade is carried out directly from the manufacturer of the goods to the client. You, as the owner of an online store, only need to develop and promote your site for successful trading.
The benefits of dropshipping
1) You don’t need start-up capital to start a business. There is no need to take loans for business, purchase goods and bear serious risks;
2) No need to have a warehouse to store goods;
3) There is no need to hire employees, the owner of the online store can handle the whole process;
4) You do not have to deal with sending goods to customers, you only need to communicate and agree on delivery. This saves a lot of effort and time;
5) You set the cost of goods yourself;
6) There are no restrictions on the number of suppliers, you can cooperate with any number of companies;
7) The intermediary sends goods to the client on his own behalf, thereby earning a reputation for his store.
1) Unreliable suppliers. Some companies cannot decide to conduct this business precisely because of the risk of being deceived by unscrupulous manufacturers;
2) Problems with delivery or marriage. In the event of a delay in delivery or defective goods, you will be responsible, despite the fact that the fault is not yours. It is necessary to provide in advance the conditions for the return of goods and reimbursement of funds to the client in case of loss or defective goods;
3) It is necessary to constantly check the availability of the necessary goods from suppliers.
Conclusions and recommendations
Currently, there are all conditions for the development of dropshipping: a lot of online stores offer cooperation on the dropshipping system, there are special directories for finding suppliers and dropshipping sites . The development of this direction in Russia is growing rapidly and at the moment it is considered very promising for beginner businessmen.
Read more about where you can find a reliable dropshipping supplier.
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