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Frequently Asked Questions

 

What is dropshipping?

The Customer orders a product from the Retailer's online store. The order is passed on to the Supplier who fulfills shipment directly to the Customer. The Seller (Retailer) has to keep no or low inventory. Purchase of stocks from the Supplier is made after the Buyer had paid the countervalue of goods to the Seller. Seller doesn't have to handle the product directlly. It's Seller's responsibility, however, to maintain a stunning website, market an online store and products, give precise shipment instructions to supplier, account for wholesale price with supplier and provide excellent customer service. 

Benefits of dropshipping

  1. Low capital is required The biggest advantange of dropshipping is that no upfront investment in inventory is needed. So it can be started with a little capital and risk involved is substantially low. 
  2. Easy to operate You don't have to directly deal with products. You don't have to bother about manufaturing, warehousing, packaging, shipment and delivery, tracking inventory.
  3. Low overhead costs Since you don't have to run a warehouse and keep an inventory overhead expenses are quite low. 
  4. Unbound sight of activity You can operate from anywhere in the world. All you need is a laptop and an internet connection.
  5. Wide range of products to offer Since you don't have to finance your stock you can offer a large selection of products for sale.
  6. Multi-location global delivery

 Drawbacks of dropshipping

  1. Ecommerce business has become highly competitive. You had better focus on a niche with not much online competition.
  2. Wholesale price higher than bulk wholesale
  3.  Business is not under your direct control

How do I start a dropshipping business?

Though it doesn't require much of startup capital to launch a dropshipping business, it's immensely hard work.
  1. Pick a niche. ...
  2. Do competition research. ...
  3. Find a supplier. ...
  4. Build your ecommerce store. ...
  5. Put your plan in place to acquire customers. ...
  6. Analyze and optimize.

Is dropshipping legitimate?

Dropshipping is entirely legitimate and credible. You have to collaborate with a dependable supplier and be aware of the marketplaces’ rules and regulations on dropshipping to avoid any misunderstandings about this business. 

Is dropshipping still a profitable business for 2020?

 As a smart retail fulfillment method dropshipping is still profitable. Since the introduction of the dropshipping model there has been a  tight competition in the ecommerce market.The more Dropshipping businesses are growing, the louder people are shouting: “drop shipping is dead!”. It is not! We believe 2020 is to become the year of dropshipping!