Dropshipping is a business model in which an online retailer (the dropshipper) sells products to customers without actually stocking or owning the inventory. Instead, when a customer places an order, the retailer forwards the order details to a third-party supplier or manufacturer who then fulfills the order by directly shipping the products to the customer.
How dropshipping works
So, if you’ve ever wondered about what is dropshipping and how it works, here’s a step-by-step breakdown of how dropshipping typically works:
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Set up an Online Store: The dropshipper creates an online store, either through their website or a platform like Shopify, where they showcase and sell products.
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Choose Products to Sell: The dropshipper identifies products from suppliers or manufacturers that they want to offer in their online store. These products can range from various categories such as electronics, clothing, accessories, home goods, and more.
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Establish Relationships with Suppliers: The dropshipper establishes partnerships with suppliers who are willing to dropship the chosen products. These suppliers often have their own catalogs and provide product information, images, and sometimes even pricing to the dropshipper.
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List Products in the Online Store: The dropshipper uploads the product information, images, and pricing provided by the suppliers to their online store. They set their own retail prices, considering factors like product cost, shipping fees, and desired profit margins.
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Receive Customer Orders: When a customer places an order through the online store and completes the payment, the dropshipper receives the order details, including the customer’s shipping information and the purchased products.
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Forward the Order to the Supplier: The dropshipper then forwards the order and customer details to the corresponding supplier, usually through an automated or manual process.
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Supplier Ships the Product: The supplier prepares the product for shipping and directly ships it to the customer’s address provided by the dropshipper.
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Tracking and Customer Support: The dropshipper may provide the customer with tracking information provided by the supplier.
