

The Cost of Setting Up Your Dropship Business is Next to Nothing: In traditional business models, the majority of the costs are related to setting up and running the retail operations, such as purchasing inventory.It’s Easy to Set Up: It doesn’t take an entire village to set up since it essentially involves just 3 steps - find the supplier, set up your website, and start selling the goods! To someone who is new to the ecommerce industry, this business model is relatively easy to understand and implement.This kind of business model is extremely attractive as it eliminates the need for the store owner to have a physical business location such as an office space or warehouse - instead, all they need is a laptop and an internet connection.Īs a business model, dropshipping has several different aspects that prove to be beneficial, such as: The dropship supplier packages and ships the order directly to the customer in the retailer’s name.The retailer automatically or manually forwards the order and customer details to the dropship supplier.The customer places an order for a product on the retailer’s online store.

In simpler terms, this is how dropshipping works:

How it works is that the retailer partners up with a dropship supplier that manufactures and/or warehouses products, packages the products, and ships them directly to the retailer’s customer, on the retailer’s behalf.
