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Drop Shipping is a retail method in which you don't keep products in stock. Instead, you partner with a supplier that stocks its own inventory. You transfer customer orders and shipment details to them, and the suppliers ship the order directly to the customer.
To better understand, checkout this diagram from Oberlo:
Customers come to the store, and after they purchase, you contact your suppliers. Then they ship the items directly to the customer. You aren’t buying any inventory. All you’re doing is making an agreement with the drop ship supplier to sell their products on your website.
You get their price lists and put their products for sale on your site. When someone buys, you place that order with the supplier. You only order the product after the customer has paid you. Then you’ll contact that supplier, and say “ship item XYZ to customer ABC.” Then they ship it and charge you.
The difference between your retail price and what you pay your supplier is the net profit.
There are no inventory costs. So when you’re starting out with drop shipping, you aren’t laying out any of your money for inventory.
The truth is that when you’re a traditional retailer, inventory is your biggest expense. You need to physically have the products to sell but with drop shipping, you don’t.
With a drop shipping business, you really can live and work from wherever you want.
These items are not coming to you if returned. If you own a drop shipping business, you won’t have returned products showing up at your house.
After you do it one time, it’s very easy to do it over and over again.
The ability for clients to automate their business by having access to a list of our preferred vendors / virtual assistants we have used to run over 300 plus amazon accounts.
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