What is DropShipping
Dropshipping is a business model that sells products in a zero-inventory way to earn profit from product sales. It is a supply chain management method (supply chain management).
As a retailer/seller, you don’t need to stock, but directly pass the customer’s order and shipping/shipping information to the manufacturer, wholesaler or other retailer, and then these people directly send the product to the customer In the hands, earn the difference from it.
Dropshipping is not a new thing either. As early as 1999, Zappos (the famous American shoe website) adopted this model, and Amazon and Sears also adopted this business model. In addition to large companies and websites, many people trade on Reddit as Dropshipper. Currently, more than 30% e-commerce companies use Dropshiping as their main inventory management method.
At present, most of the Drop Shipping suppliers and service providers are mainly based in the United States. Since 2006, many Drop ship companies have appeared in China, most of which are wholesalers and companies and individuals that provide Drop Shipping services. The main reason is the extremely convenient online procurement and the rapid development of e-commerce.
In China, the spread of small logistics and express delivery industry and the popularization of online shopping provide a good foundation and environment for the development of Drop Shiping. For example, AliExpress is the representative of the development of the Dropshipping industry.
Especially small-scale e-commerce companies like Dropshipping. After all, they don't need to spend money and energy to invest in inventory, they only need to focus on promotion and attract customers.
It can be roughly divided into the following three steps:
- The customer places an order at the retailer store-such as yoursShopify store
- After the retailer receives the payment, the customer order is sent to Wholesaleer, supplier or other retailer (that is, a third party)
- The above-mentioned third party directly sends the goods/goods to the customer, and the whole sales process is over.
Note: At present, the popular method of Drop Shipping on the Internet in foreign countries is to find products from AliExpress, and then use oberlo to connect the products to your Shopify online store to make a profit. (See details)