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What is Dropshipping?

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Question added by Muhammad Yuseef , IT Manager , Master Point Trading
Date Posted: 2016/03/12
marshad coppala
by marshad coppala , Office Clerk , Gbm Qatar

Drop shipping is a method where the store purchases from the third party and direct delivers to the customer

Mahmoud Madian Madian
by Mahmoud Madian Madian , sales analsys , Glaxo Smith Kline

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. 

This unique model has a number of benefits and drawbacks:

Drop shipping is a fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer.

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. The store makes a profit on the difference between the wholesale and retail price. A useful tool for Magento dropship integration , an ecommerce platform with dropshipping integration, automating the product import and order processing.As an ecommerce entrepreneur, I once made the mistake of buying a large inventory that didn't sell quickly enough, leaving me with excess stock. If only I had known about dropshipping then, I could have tested many products without the risk, spending money only when items were purchased. Dropshipping is a game changer, opening opportunities for small businesses to efficiently reach customers anywhere.

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