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Dropshipping: a revolutionary selling model

Dropshipping is a sales model thanks to which a seller sells a product to an end user, without owning it materially in its warehouse.

The seller, who made the sale, will transmit the order to the supplier that in this case is called “dropshipper”, which will ship the product directly to the end user.

What does dropshipping mean?

The system of sale in “drop ship”, born in America more than ten years ago, has become more widespread thanks to the growth of online auction sites, which have allowed thousands of sellers operating on sites like eBay to propose daily products made available by dropshippers, on their virtual stores, earning the price difference between the cost of dropshipper and the price of the final sale made online.

What are the benefits?

No more upfront inventory costs, no more logistics and shipping: with dropshipping, products are sent to your customers directly from the supplier.

In this way, the seller is only concerned with the advertising of the products, without the related tasks connected to the packaging and shipping processes.

1) You can get started with very little money. In fact, you can start a dropshipping business with minimal costs. Using a dropshipping supplier saves you money because you don’t need a physical warehouse anymore and you won’t pay for products until you have actually sold them.

2) This business model is suitable for virtually everyone. It is a business activity suitable for the novice, as the relatively low costs to start the business and the minimal risks make dropshipping a great way to take your first steps in online sales. Finally, another reason that allows dropshipping to be so interesting is that it allows (given the negligible costs) to become familiar with a particular niche, study the merits, defects, but especially the potential. Particular eventually to exploit later with other types of online sales.

3) Shipping charged to the manufacturer. The dropshipper has the remarkable advantage of being able to work (and earn) without having to deal with shipments. Once the order is turned, the vendor does not have particular duties if not that one to manage eventual returns or problems from part of the buyer.

4) Ability to work without a fixed location. With just a smartphone, tablet or laptop, you can easily manage your dropshipping.

This translates into the opportunity to carry out this activity wherever you prefer (as long as you have access to an internet network). In addition, this type of business fits completely into the view of a second job.

How does dropshipping work?

The moment a customer buys a product, the dropshipper collects the money and turns the order over directly to the manufacturer. This prepares the goods, taking care of the packaging and possibly using the dropshipper’s logo, then sending the package directly to the customer.

Once the transaction has taken place, the dropshipping activity makes an invoice to the final customer, while the manufacturer will make it directly to the dropshipper.

Throughout this operation the customer will never be aware that the goods have been sent to him by a third party.