Dropshipping is on its way to becoming a business model that continues to grow rapidly in the e-commerce world and is becoming popular. Dropshipping, also known as product procurement, is a business model used to ship the products you have sold directly from the supplier to customers. When you receive an order, it is ensured that this order is transferred directly to your supplier and the product is transmitted directly to the customer. Thus, there is no need for product storage and inventory storage. It is a good business model for starting your own business and selling without stock and growing your business. This makes it an attractive option for entrepreneurs in terms of low startup costs and business complexity.
The dropshipping business model consists of several main components. First, an entrepreneur who wants to start a dropshipping business should have an e-commerce website or store. This website showcases products to potential customers and offers them the opportunity to shop. Then, the entrepreneur selects the suppliers he wants to offer his products to.
Suppliers are companies that have agreed to send dropshipping businesses their products directly to customers. The entrepreneur determines the prices of products by making agreements with these suppliers. When customers order products through the website, the entrepreneur forwards these orders to suppliers, ensuring that the products are sent directly to customers. In this way, the entrepreneur can operate an online store, without having to stock products or manage inventory.
According to the business plan you will make, your need for a domestic or international supplier may vary.
If you are participating with your store on an e-commerce platform that also sells abroad and your products are in the country, you should work with a supplier company that is located in our country but can send products abroad. If you are going to sell a product produced and sold domestically in your own country again, you should work with a supplier company located in the country.
However, if the products are to be shipped abroad, from another country to another country, you can work with a supplier with a supplier at the place where you make purchases. If you are constantly selling to the same country, you can cooperate with a supplier company in that country and work with the supplier through shipments.
What are the advantages of dropshipping?
One of the advantages of dropshipping is low initial costs. There is no need to deal with costs such as holding large amounts of stock or renting warehouses. It is a business model that is far from traditional retailing. In addition, entrepreneurs can take orders from customers before purchasing products, which reduces financial risks.
Another advantage is being able to manage the business from almost anywhere. You can work from anywhere with Internet access. Also, since you don't have to deal with the physical shipping and logistics of products, you can focus your time on more strategic business decisions and marketing activities.
What are the disadvantages of dropshipping?
However, the dropshipping business model also has some difficulties. The competition is quite intense and you may have to compete with other dropshippers who sell the same products. You also have to rely on suppliers to control product quality and delivery times, which can sometimes lead to problems.
As a result, dropshipping is popular as a business model that offers low initial costs and time flexibility, but requires careful planning and good supplier relationships. It is important for potential entrepreneurs to research the Sunday well, develop effective marketing strategies and attach importance to customer service.