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Understanding the Dropshipping Model

Dropshipping is a business model that allows people to start an online store with little money or inventory investment. In dropshipping, a retailer finds wholesale products to sell on their website at a higher price. When a customer places an order, the retailer purchases the product from the wholesaler and has it shipped directly to the customer. This eliminates the need for the retailer to store or ship inventory themselves. Setting up an online store through tools like Shopify makes the process of starting a dropshipping business simple. While it requires effort, dropshipping provides an opportunity for those with little experience or funds to quickly start their own online business.

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Samuel Alarco
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112 views1 page

Understanding the Dropshipping Model

Dropshipping is a business model that allows people to start an online store with little money or inventory investment. In dropshipping, a retailer finds wholesale products to sell on their website at a higher price. When a customer places an order, the retailer purchases the product from the wholesaler and has it shipped directly to the customer. This eliminates the need for the retailer to store or ship inventory themselves. Setting up an online store through tools like Shopify makes the process of starting a dropshipping business simple. While it requires effort, dropshipping provides an opportunity for those with little experience or funds to quickly start their own online business.

Uploaded by

Samuel Alarco
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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WHAT IS DROPSHIPPING?

If you have ever been interested in online business, or just have looked up ways to make money online,
you have probably encountered the word “DROPSHIPPING”, and heard of people who have made
thousands of dollars in their first week with this online business model.

But if you are looking at this video, then you are wondering: What the heck is dropshipping?

Dropshipping is a way of making business online, a business model. One that potentially allows people
with little money to invest to start in a short amount of time their own online store, and quickly make
profits.

But how does it work?

Normal shops like Amazon buy their products from a manufacturer or from a wholesaler. Then they
keep it in a storage location, a STOCK, and sell it online through a website or a PORTAL to whoever is
interested. You may already know the advantage of an online store over a physical store, mainly that
people from all over the world can buy your products, no matter where they live!

But even if you don’t need to worry about a physical shop, and all the investment that comes with it,
there are still somethings to take into consideration, like the initial investment to buy the products you
are gonna offer beforehand (YOUR INVENTORY), where to keep your stock, (STORAGE), and how to ship
it to your client on time (SHIPPING).

Taking care of these can mean ENORMOUS INITIAL INVESTMENT, which is why many people are
discouraged to start their own online business, specially if you don’t have much money.

Dropshipping eliminates these difficulties.

You see, in dropshipping, you look for products offered wholesale and sell them at a higher through your
website. When a client places and order through your website, you go to your wholesale provider, make
the order, and have the wholesale provider ship the product directly to the customer. That way, you
don’t need to keep an inventory stock of your product, and don’t need to worry about storage, and the
shipping is usually taken care off by the wholesale provider.

The only thing you have to take care of is to create and maintain an attractive and accessible website to
sell your products: a portal.

Nowadays this is super easy to accomplish through tools like SHOPIFY, which make the whole process
incredibly simple, enabling people with little to no tech experience to set up and run their online shop in
matter of hours or days.

Now like any business and ecommerce, dropshipping is a serious thing that requires some effort and
dedication, and most probably you will not succeed immediately, but it provides such a great
opportunity for people with little experience or low funds to quickly and efficiently start their own
online business.

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