Dropship Definition, How it Works, Advantages and Disadvantages

ACTIVELY SHARE — Dropshipping is one of the most popular ways of doing business online. Dropshipping can be an alternative for those who want to start a business but are constrained by the lack of capital. So, what is dropshipping?

Quoted from the Shopify page, dropshipping  is an order fulfillment method where the store does not keep the products it sells in stock. Instead, stores buy products from third-party suppliers who then ship the goods directly to the buyer.

In other words, dropshipping  means a sales system in which the seller or dropshipper only needs to market and sell goods belonging to other parties without the need to stock the goods first.

The biggest difference between the standard retail model and dropshipping is that the merchant who sells doesn’t keep or own inventory. The seller in the dropship system is that they act as an intermediary.

Because of this, the dropshipping system allows sellers to only purchase supplies as needed from third parties to fulfill orders.

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