What is Drop Shipping?

what is drop shipping

Drop shipping requires the retailer to partner up with a drop ship supplier that manufactures and warehouses products, packages the products, and ships them directly to the retailer’s customer, on the retailer’s behalf.

The most significant convenience of drop shipping is that the shop owner only purchases the product when the customer does.

In simple form:

1. The customer places an order for a product on the retailer’s online store.

2.    The retailer automatically or manually forwards the request and customer details to the drop ship supplier.

3.  The dropship supplier packages and ships the order directly to the customer in the name.

Useful tips:

  • Identify a target market and curate their products for the acquired audience and brand test orders are a great idea –   they allow you to receive the product and describe its features and benefits as a customer would.
  • A well-executed marketing plan is strongly advised to enable growth and sustainability.
    Which is why one needs to invest the time and resources into every piece of it. 
  • Finding your target audience to connecting with influencers in your market on social media. It’s easy to set up.

Advantages:

  • Lower Capital Requirement.
  • Minimizes risk of loss of revenue as a result of changes in tastes or trends.
  • Lowers costs – new products are likely to be more inexpensive to launch because they don’t need investment before they can be sold.
  • Offers convenience – all the hassle of packing of products to prepare them for shipment is taken care of for you.
  • Provides practicality – A storage facility or retail location is not needed- just the website where the items will be sold.

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