To better understand how Dropshipping works, let's look at a simple example: Lipstick manufacturer 'A' sells the product 'Lipstick' to supplier/wholesaler 'B'. Supplier 'B' buys the lipstick in bulk and keeps it in its warehouses until it can be resold to retailers. Merchant 'X', who owns an online makeup store, enters into a partnership agreement with supplier 'B' for this particular lipstick. Merchant 'X' now has 'Lipstick' on their online store for sale. The customer "P" searches the Internet for the lipstick "Lipstick" and sees that it is available in the online store of the merchant "X", from where he places his order, at a retail price.
Dealer 'X', who has access to supplier 'B's' website, orders Special Database the lipstick from there, at a discounted wholesale price. Makes the payment and fills in the shipping information to customer "Ψ". Supplier 'B' receives the order and undertakes to package and ship the product 'Lipstick' to customer 'Ψ', under the name and details of merchant 'X'. The advantages of Dropshipping Dropshipping is the right business model for aspiring entrepreneurs who want to try out different business ideas and delve into the market and its needs with limited risk . Some of the main advantages of Dropshipping are: Low start-up capital Perhaps the biggest advantage that Dropshipping can offer you is the ability to start a business with minimal initial costs, with no capital commitments to purchase inventory. You only pay for a product if you have made the sale and received the money from the customer.
Quick start Starting a business has never been easier and faster! All you will need, initially, is a small capital to build an e - shop , a computer, internet connection and a good supplier, who will take care of all the rest. You can even start Dropshipping by simply creating a "store" on international e-commerce platforms such as eBay , Amazon and AliExpress . Easy to manage Managing an e-commerce business becomes significantly easier when you are not directly managing the physical products themselves. With Dropshipping, issues such as running a warehouse, monitoring stocks, the packaging process, shipping and returning products will never concern you!