What is dropshipping and how does it actually work?

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.

Here's how dropshipping works:

  1. You set up an online store: You create an online store and add products to your store, typically using a platform like Shopify or WooCommerce.

  2. You find a supplier: You find a supplier or manufacturer who offers dropshipping services and select the products you want to sell on your store. You can find suppliers through online directories or marketplaces like AliExpress or Oberlo.

  3. You list the products on your store: You add the products from your supplier to your online store and set your selling price, taking into account your profit margin.

  4. A customer places an order: A customer visits your online store and places an order for a product.

  5. You place the order with your supplier: You place the order with your supplier, including the customer's details and shipping address.

  6. Your supplier ships the product: Your supplier ships the product directly to the customer, usually with your branding or packaging.

  7. You keep the profit: You keep the difference between the price the customer paid and the price you paid to the supplier.

Dropshipping allows you to start an online business without the need to hold inventory, manage shipping, or worry about fulfilling orders. However, you will need to invest in marketing and customer service to build your brand and generate sales. It's also important to choose reliable suppliers and manage your inventory levels to avoid stockouts and delivery delays.


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