What Is Drop Shipping and How Can a Reseller Business Earn Profit from It?
Is it possible to make money online? The exponential growth of eCommerce has proved that online reselling is just as profitable as a traditional retail business, provided that you make the right decisions.
Your guide to making money online with the dropshipping model
The most striking difference between dropshipping and wholesale is your inventory—or lack thereof. Essentially, the dropshipping model allows you to outsource inventory management, order fulfillment, and shipping to a third party.
Here’s how it happens:
- A customer places an order from your store.
- The order is sent automatically to your drop shipper.
- The dropshipping supplier prepares the order.
- The dropshipping supplier ships the order directly to your customer.
Thanks to dropshipping, you need not hold any inventory or deal with the shipping. And as a result, you can:
Start making money online immediately
Dealing with physical products means you have to worry about warehouse space, inventory management, and order tracking. On top of that, you’ll need to pack and ship your orders separately, handling returns and inbound shipments whenever they arrive. Dropshipping removes physical products from your responsibilities altogether, allowing you to run an online business immediately.
Invest less capital and minimize overhead costs
Besides the time it takes to handle physical products, you’ll also need to deal with costs. For example, keeping your inventory means paying for warehouse space and utility bills. Meanwhile, dropshipping only requires you to purchase a product once ordered, reducing upfront investment and overhead costs!
Scale your business easily
Can’t choose which products to offer in your business? Dropshipping allows you to list different items in different categories at no additional costs. Plus, you can quickly scale up or down depending on your customers’ demands, leaving most of the work to your drop shipper.