Dropshipping for free is a popular business model. The intermediary does not have stocks of goods in stock but buys them from the manufacturer only when he or she receives an order for them and payment from the buyer. Or he or she passes the order to the wholesaler that then sends it himself.
Judge for yourself – you can open a business, not being a manufacturer of a particular product and not even having such products in stock. In the dropshipping model, the producer himself is responsible for the delivery. You are, in fact, the intermediary between him and the buyer. Thus, dropshipping frees the entrepreneur from the need to solve several issues, such as inventory, logistics, and the like, allowing him or her to focus on marketing, promotion, and increasing sales.
Dropshipping has become particularly popular in e-commerce and other areas of online sales for a reason. It makes it possible to start a business with minimal start-up capital, requires less money in the process, is characterized by the ease of scaling and allows you to offer potential customers a wide range of products. To create your dropshipping online store, you can use our dropshipping plugin. With it you can:
- Import AliExpress products
- Edit your product details as you wish
- Import AliExpress prices in different currencies
- Fulfill and track orders automatically
- Сreate pricing rules, and price your products in bulk
Pros of dropshipping as a business model
The interaction between a seller of goods and his suppliers based on this model has some advantages. One can name a whole list, which will be especially relevant for a small business owner:
- A wide range of goods. As there is no need to buy all the items presented in the catalog of the supplier, you can greatly expand the range of products in your online store.
- Easy start. You do not need the initial capital to purchase batches of goods, which is especially important when working in legal dropshipping with a large assortment or in a niche where the products are of high value.
- Time savings. Solving issues related to the processing of orders, storage, and delivery of goods can be very time-consuming. Especially if you are organizing an online store business for the first time, not having the appropriate experience. In this case, the supplier himself is responsible for all these issues.
- Flexibility and independence. You can enter into cooperation agreements with any number of suppliers, not limited to one partner. This gives you not only flexibility in terms of assortment but also the opportunity not to be dependent on only one of them.
- No inventory problem. Since there is no need to buy goods in whole batches and keep them in stock, there is no risk of facing the problem of unsold inventory balances.
- Cost savings. You do not spend money on shipping and storage of goods, do not pay customs duties, do not worry about the relevance of contracts with manufacturers and others.
It can not be doubted that for the majority of budding entrepreneurs the biggest advantage would be precisely the need for minimal investment at the start. But the other advantages are significant enough to pay attention to them.