There are many ways to sell goods online, and most of them require sellers to physically keep their products in stock. Dropshipping, on the other hand, gets rid of this necessity and all the costs associated with it. Moreover, the seller never directly handles the products. This opens many opportunities for people who can’t afford storage fees or have to travel a lot.
How Dropshipping Works
Online retailers who operate via dropshipping rely on third-party wholesalers and manufacturers. First, a customer visits the retailer’s website or online store and places an order. After receiving the order and payment details, the seller contacts their supplier and sends the data to them. The supplier processes the order, handling the packaging, labeling, and shipping. All the while, the buyer usually has no idea that the goods come from the supplier.
Pros and Cons of Dropshipping
Dropshipping is a flexible and hassle-free method of selling goods online. For starters, the retailers don’t need to buy or rent the means to make, store, and ship the goods. This drastically lowers startup costs. Since there’s no need to own any facilities, retailers can trade a wider variety of goods by working with multiple suppliers. It greatly expands the online store variety and gives access to more potential buyers. All dropshipping technically needs is an Internet connection.
However, there are flaws with this kind of business model. Retailers have to buy each product from manufacturers individually for each order. This means that the profit margins are rather thin. If suppliers have stock issues, there’s nothing sellers can do about it, leading to shortages and customer loss. And lastly, since the retailer is not the one handling shipping, they have no control over delivery time and quality.
If you want to run an online retail business but don’t have the resources to afford manufacturing, storage, and shipping, dropshipping is the best option for you. All you need is a working Internet and a mobile device. Essentially, you act as a bridge between buyers and manufacturers, and the latter handle the rest. It gives you a broad range of goods to sell, but you have no control over the stock and shipping and can turn out a low profit. Still, if you want to get your online sales business started, it’s your best and safest solution.
And if you want a secure way to do dropshipping, OctoBrowser is just what you need. It blocks all tracking and lets you operate multiple accounts and profiles at the same time, making communication with buyers and producers quick and easy!
