1.1 Overview
DropShipping is an operating model of supply chain management, mainly used in the field of cross-border e-commerce. In this model, the retailer does not need to hold inventory of the goods, but instead provides customer orders and shipping details to the supplier, the supplier sends the goods directly to the end customer, and the retailer earns the difference between wholesale and retail prices.
Business process:
1. The DropShipping platform obtains various product information from product suppliers and publishes it on the platform.
2. Independent sellers log in to the DropShipping platform, select the products they are interested in, and sync to their own online store.
3. Consumers buy products from sellers’ stores independently.
4. The seller of the independent station will synchronize the order to the Drop shipping platform and pay the payment
5. Drop shipping platform delivers products directly to consumers
Advantages of this model:
1. Low threshold: no need for a large amount of capital investment, avoiding inventory overhang and capital occupation
2. Low management costs: no need to deal with inventory and logistics, low management costs
3. Strong activity: It can operate anywhere with Internet connection, and the location is flexible
4. Wide selection of products: you can sell a variety of products without buying inventory in advance
If you already have your own standalone online store, such as shopify or WooCommerce, but are stuck with product selection and product content updates every day.
Or maybe you already have an offline store and want to start a new business online.
Or maybe you’re just a novice who wants to catch the trend of e-commerce and start an online business.
Then you should take a look at the Dropshipping model.
It provides a sustainable, efficient and low-cost way to make money online.