What is dropshipping and how does it work? Is this really a valid supply chain management model? Can anyone use this technique? The truth is that dropshipping is actually a very simple process and a cheap entry point for buying and selling online.
The dropshipping business model works like this: retailers find products from companies that want to ship them and then list those products on online auctions or e-commerce websites. The retailer is then responsible for promoting the product and collecting payment for it, but never actually owns the item. You can consider the top dropship automation software to enhance your business growth.
Here are the first two benefits of direct delivery. Perhaps the most important thing is that you shouldn't keep your own inventory. For you as a retailer, this means you don't need large capital investment to start your business – you don't have to buy all of your products upfront. You simply list the items that the vendor wants to ship and then collect the payment.
The benefits of this step should also be clear. Just because you don't have inventory doesn't mean you have to worry too much about sudden changes in customers or the market. You will never find a room full of outdated equipment because you never actually buy any equipment. You have just processed your payment and order. Suppliers are the people who take care of the rest of the supply chain equation.
And the part of the equation that drop forwarders handle is not small. Dropshipping saves a lot of time that would normally be busy with activities such as stocking, product packaging, and queuing after endless queues at the post office.