Business model thanks to which really anyone can start e-commerce. Dropshipping is a form of business on the Internet, where no warehouse is needed for online sales. The owner of the e-shop only takes care of the promotion of the goods and his shop, and another partner manages the warehouse and dispatches orders.
What is dropshipping
Dropshipping is a form of online sales, which is especially suitable for beginning entrepreneurs who do not have enough capital to buy stocks and create a warehouse. Dropshipping is therefore relatively carefree. The only task of the e-shop owner is to get visitors to his site. Storage, packaging and sending of shipments is handled by the supplier. The disadvantage, however, is lower margins. Respectively, the commission that the supplier pays to the trade intermediary.
Problems can also occur if the customer returns the goods purchased in the e-shop. Due to the involvement of another party, the process can be unnecessarily complicated and relatively disadvantageous for the operator of the final e-shop. Dropshipping is ideal for the initial creation of sufficient capital to acquire own stocks. Another way to run an e-shop without your own warehouse is fulfillment.