"No inventory, no headache when your store sells a product, it is purchased from a third party and shipped directly to your customer"
In case you are at the very beginning of your research and are looking for digital nomad jobs that make a decent income, let’s quickly look at the meaning of dropshipping.
The dropshipping experts at Shopify define it like this:
“Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.”
In other words, if you open a dropshipping store, you never have to stock and distribute the products you are selling. You simply buy it from a third party and let them handle the logistics.
What Is Dropshipping?
The main concept of dropshipping is selling products you don’t actually own. Working with dropship partners is not only a product acquisition model, but also includes product fulfillment. The process works by taking orders from your online business and forwarding them to your supplier/dropship partner. They in return, ship the product to your customer on behalf of your company. The key to making money with drop shipping is making a profit on the price difference between what you charge and what your dropshipping partners charge you.
How does dropshipping work?
No more up front inventory costs or shipping
logistics. With dropshipping, products are sent
directly from your wholesaler to your customers.
Customer places order with your shop
Your shop places order with third-party supplier
Third-party supplier prepares your order
Supplier ships order directly to the customer
Benefits of Dropshipping
You Don't Need Lots of Money:
Drop shipping makes it amazingly easy to get started selling online. You don't need to invest heavily in inventory, yet you can still offer thousands of items to your customers.Easy to Get Started
– Running an ecommerce business is much easier when you don't have to deal with physical products. With dropshipping, you don't have to worry about:
- Managing or paying for a warehouse
- Packing and shipping your orders
- Tracking inventory for accounting reasons
- Handling returns and inbound shipments
- Continually ordering products and managing stock level
Convenience & Efficiency:
Successfully launching and growing an ecommerce business takes a lot of work, especially if you have limited resources. Not having to worry about fulfillment is incredibly convenient and frees up your time to concentrate on your marketing plan, customer service, and operations or even working in your office.
With all the physical fulfillment issues handled, you're free to operate your business anywhere you can get an internet connection and that’s the biggest advantage.
It's a Trusted Model:
You might be thinking that this sounds like some sketchy model – but it's not. Plenty of Shopify online stores, even major retailers like Sears,use drop shipping to offer a wider selection of products to their customers without having to deal with increased inventory hassles.
Wide Selection of Products:
– Because you don't have to pre-purchase the items you sell, you can offer an array of products to your potential customers. If suppliers stock an item, you can list if for sale on your website at no additional cost.
Who's It For?
Dropshipping is by nature, the cheapest option to get started. Therefore, dropshipping is for people that are would prefer to keep startup costs as low as possible and are less concerned about margins. Dropshipping is also a great option for someone that doesn’t want to hold and manage inventory
Shopify enables thousands of people to run
their dropshipping stores with ease.
Easily Add and Ship Products
Import hundreds of products to your store in minutes – and after you receive an order, have it shipped directly to your customer.
Shopify automates your product and order management, which allows you to spend more time on growing your business.
Earn More Money
Shopify automations give you more time to focus on generating sales. Sales will give you the opportunity to grow.