Dropshipping is a great business model for new entrepreneurs. It’s low risk, low cost easy to start up, and is highly automated. You can even run your dropshipping company frm a home office or laptop.Naturally, you need to be a bit attentive to your choices in products and/or markets, suppliers, and even website hosts, but in this guide we are going to look at what it takes to become a dropshipper and how to go about creating your own, successful online store using this remarkable approach.
Before we begin, let’s just take a moment to look at dropshipping and the rumors you might hear swirling around it. Firstly, the formal definition of 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. As a result, the merchant never sees or handles the product.
The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the merchant purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders.