Updated: Feb 18
"Dropshipping is a retail fulfillment method where the seller does not keep the products in stock. Instead, the seller purchases the products from a third-party supplier, who then ships the products directly to the customer", says Prof Gaurav Mandal ,National awarded Fashion Designer.Dropshipping is a retail fulfillment method in which an online store doesn't keep the products it sells in stock. Instead, when a customer places an order on the store, the retailer purchases the item from a third-party supplier (typically a wholesaler or manufacturer) who ships the product directly to the customer.
In other words, the retailer (the online store) acts as a middleman between the customer and the supplier. The retailer does not hold inventory or ship the products directly to the customer, but rather relies on the supplier to handle these tasks.
One of the main advantages of dropshipping is that it eliminates the need for the retailer to purchase inventory upfront, which can be expensive and risky. Instead, the retailer can list the supplier's products on their online store and only purchase them when a customer places an order. This allows the retailer to save money on inventory costs and focus on marketing and growing their business.
Here are how you can use the advantages of dropshipping:
Low startup costs: With DS, you don't need to invest in inventory, which means lower startup costs.
Easy to start: You can start a dropshipping business from the comfort of your home with just a laptop and an internet connection.
Wide product range: You have access to a wide range of products without the need for storage space.
Scalability: As your business grows, you can easily scale up by adding new products and suppliers.
Lower risk: With dropshipping, you only purchase products when you receive an order from a customer, which reduces the risk of unsold inventory.
Some disadvantages of dropshipping are:
Lower profit margins: Since you are not purchasing products in bulk, your profit margins are lower.
Limited control: You have limited control over the quality of the products, the shipping process, and the customer experience.
Shipping times: Shipping times can be longer since the products are shipped from the supplier directly to the customer.
"Overall, dropshipping can be a great way to start an online business with low startup costs and minimal risk. However, it's important to do your research and carefully select your suppliers to ensure a positive customer experience" quotes Prof. Mandal.