1.What is dropshipping?
dropshipping is a business model (no-inventory model). Merchants do not have to actually own the storage, packaging or shipping of products. The role of merchants is mainly to sell products and communicate with customers, while suppliers or manufacturers are responsible for the actual inventory management and logistics.
- Advantages of dropshipping
① Reduced costs and risks.
Merchants do not need to purchase and store goods, reducing inventory costs and storage expenses. At the same time, they do not have to worry about overstock or obsolescence of inventory.
② Simple and easy to implement.
Merchants only need to sell products and communicate with customers, while suppliers or manufacturers are responsible for the actual inventory management and logistics.
③ Expand the selection of goods
Merchants can sell more goods without being restricted by storage and cooperate with multiple suppliers or manufacturers at the same time. Therefore, merchants can sell a large number of different goods in their online stores without worrying about storage and logistics issues. 3. Disadvantages of dropshipping
① The profit is relatively low
Since merchants only sell products and share profits with suppliers, their profits are usually lower than those of merchants who actually have inventory or manufacture products themselves. ② Inventory shortages or transportation problems may occur
As merchants cannot directly control inventory and logistics, situations such as product shortages or transportation delays may occur. - Rely on suppliers or manufacturers
Businesses need to build their operations on the basis of suppliers or manufacturers, and thus they need to trust and rely on the quality and services of suppliers or manufacturers
SmartDropping, a service provider specializing in purchasing, labeling, packaging and shipping on your behalf, is your preferred choice for fulfillment service agency in China! It’s worth learning about. Contact information: wechat:rongexpress.