How the Drop Shipping Business Model Works?

I would be interesting to know about drop shipping for my online ecommerce retail business ? Can anybody explain me how the dropshipping business model works?

Hello Friends,

As an online retailer you have a virtual store, so why not have a virtual inventory as well? Drop shipping can reduce your upfront costs and commitments. You have no inventory-carrying costs. You don’t have to buy products in case lots or meet minimum purchase requirements to order or restock. You have no warehouse to maintain with no pick-pack-ship staff that you have to pay regardless of whether or not they’re working.
Certain product types lend themselves to drop shipping, especially big and bulky items. These items are expensive to receive, store, and ship back out, so it makes a lot of sense to drop ship them from the manufacturer.
The location of certain suppliers can also provide a geographic shipping advantage. For example, while our company is centrally located in the US, we have a very reliable West Coast company who is an excellent shipper. Since they are a lot closer to our customers than we are, drop shipping makes a lot of sense.

Thanks and Regards,
Agili Ron

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Hey previosly i dont have this much information about it. But thanks for explaining this.

Drop shipping can turn out great --- or turn out disastrous --- and a lot of it is luck.

Agili Ron has explained the good side. You don't have to keep stock or despatch the orders.

The bad news is when incorrect or faulty goods are shipped, or shipped late, or never shipped at all. Then you are caught in the middle!