What is the dropshipping?

What is dropshipping?

Dropshipping is a retail method that allows you to sell products on your website without keeping the products in stock. You partner with a wholesale supplier that stocks its own inventory. When a customer buys a product on your website, you transfer the order to the supplier. Then, the command is directly shipped to the customer. The products are sent to the end client with a return address and invoice customized to your eCommerce store.

Main advantage

  1. You don’t need buckets of money in order to start your business. 
  2. You don’t have to worry about fulfillment or inventory issues.

Challenges

  1. A lot of competition and weak margins;
  2. Syncing inventory is difficult (and leads to out of stock items). You can work with multiple suppliers with an overlapping product line to overcome this issue.
As you can see, based on Google Trends the number of search queries around dropshipping is continuously growing.

In order to build your own eCommerce website using drop shipping, there are two main CMS (content management systems), Woocommerce and Shopify. In the next article, we will cover the differences and similarities between those two technologies.