Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock.
Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.
The store never sees or handles the product.
Some key points about dropshipping:
1. No Inventory Management: The store doesn't need to manage or store any physical inventory.
2. Low Overhead Costs: The store only needs to pay for the website, marketing, and customer service. It doesn't need to pay for warehousing or shipping costs.
3. Easy to Start: Starting a dropshipping business is relatively easy, as it doesn't require a large investment in inventory or a physical location.
4. Scalability:Dropshipping businesses can scale easily by adding new products and suppliers.
5. Flexibility: The store can sell a wide range of products without having to worry about inventory management or storage.
6. Challenges: Dropshipping also has its challenges, including competition, low profit margins, and the need to constantly find new suppliers and products.
7. Third-Party Dependence: The store is dependent on its suppliers for product availability, shipping times, and quality control.
Overall, Dropshipping is a low-risk, low-investment way to start an e-commerce business.