Dropshipping is a retail fulfilment method where a store that is selling goods does not keep them in stock. Rather they purchase it from a third party who ships it directly to the customer. Hence the seller does not have to handle the goods directly.
A major difference between dropping and a standard retail model is that the seller does not have to store the goods. To fulfil their orders, they end up purchasing them from a manufacturer or wholesaler.
The benefits of dropshipping
For budding entrepreneurs drop shopping is a great model since it is accessible. With limited downtime, you can test various methods that provide you with considerable inputs on how to choose particular products in demand.
Dropshipping requires less capital
With a significant degree of inventory investments, with a successful drop shipping model, it is possible to start a business with less amount of money.
An e-commerce store can be launched without having to spend a lot of money on inventory
There is no longer a need to purchase a product since you have made the sale and the customer has paid
Unlike in a traditional business model, there is less risk involved if you are starting a dropshipping store.
2. Dropshipping is an easy business to start
Operating an e-commerce store is an easy task as there is no need to physically store the goods. With dropshipping, you no longer need to worry about
Paying or managing a warehouse
Packing along with shipping the orders
Handling returns along with inbound shipments
Regular managing products and managing the stock levels.
3. Dropshipping indicates low overheads
There is no hassle involved in managing a warehouse or purchasing inventory
The overhead expenses are on the lower side.
Some of the dropshipping business tends to operate as home-based stores, that only requires a laptop and a few recurring expenses to remain operational.
Once a business grows the costs will increase, but still, it is going to be less when you compare it with the traditional brick and mortar store.
A seamless dropshipping model provided by Amazon
FBA (Fulfilment by Amazon) model offered by Amazon Global Selling program is a similar module to dropshipping that enables sellers to tap on to the international markets. The products are delivered in a hassle-free manner across the globe. With Amazon Global Selling, you can reach 300 + million customers and around 18 marketplaces to export your products.
It is a business where less investment is required and no form of shipping complications exist. In a way, the export of products via Amazon is the perfect business to start with a low investment.
Also Read: What is DGFT and What are Its Functions?
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