Dropshipping essentially means instead of buying inventory you display products – which are housed in a dropshipping wholesalers warehouse – on your own website.
When the sale is made, you purchase the product from the wholesaler who packs and ships the product directly to your customer. As the retailer, your profit is made from the markup you put on the product. It’s that simple – at least most of the time.
The main advantage of dropshipping for entrepreneurs – especially if they’re new to ecommerce – is that you don’t need to carry any inventory. This significantly reduces both the upfront costs and risk involved with starting your new business.
But, as you can expect, there are some pros and cons to this particular ecommerce business model, so let’s examine them further.
4.1 Pros and Cons Of Working With Dropshipping Wholesalers
While a great entry point to the ecommerce industry, dropshipping is not a business model to enter into lightly, …