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.
- You don’t need buckets of money in order to start your business.
- You don’t have to worry about fulfillment or inventory issues.
- A lot of competition and weak margins;
- 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.