What Is Drop Shipping?

Drop shipping is both a sourcing a fulfillment business model where you never actually owns the inventory you are selling. Instead, you are acting as a middle man/agent/sales that is selling the goods on your own website or platform and when you receive an order, you pass that order onto the drop shipping company for them to pick, pack and ship. Your profit is the difference between what you charge your customers on your website and what the drop shipping company charges you.


How Does Drop Shipping Work?

Drop shipping is very straightforward 

  1. Any customer visits your online store and makes a purchase
    B. You receive the order and manually forward the order info to your vendor.
    C. Now your vendor packs the order and ship to your customer without their company info, (we called it blind dropship)What is blind drop ship?
    The shipper makes no packing list or invoice when sending out the order. This could prevent your customer contact your vendor directly for any future orders.

    -Zero or Low upfront cost: With drop shipping, you don’t need to invest thousands of dollars in inventory. Instead, you just need to list the products that the vendor has for sale.
    – Variety of products: With drop shipping, it is possible to list every products with your own connections
    -Work freely: All you need is the wifi-connected computer and you can work at any places.

    -Highly competitive: If you could the inventory from the market easily, so does your competitor
    -Low margin: Between 3%-5% profit after your web site or platform charges.
    -Movement of the market: You will be always stay alert for what’s hot on the market, and always looking for new items since you have no control of the brand & inventory.

    How to be a winner in the drop shipping world?

    -Stay connected for what’s trendy for your customers
    -Have some well established & stable vendors
    -Have your products posted in different platforms
    -Required patience & alot of hard work