What is Dropshipping? A Beginner’s Guide to E-Commerce Success
Dropshipping is a business model that allows entrepreneurs to sell products without holding any inventory. Instead, when a store sells a product, it purchases the item from a third-party supplier who then ships it directly to the customer. This means the seller never handles or sees the product, making it an attractive option for those looking to start an online business with minimal investment.
How Does Dropshipping Work?
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Choose a Niche and Supplier – The first step is selecting a profitable niche and finding reliable suppliers through platforms like AliExpress, SaleHoo, or Oberlo.
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Set Up an Online Store – Entrepreneurs create an online store using platforms like Shopify, WooCommerce, or BigCommerce.
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List Products and Set Prices – The selected products are listed in the store, and prices are marked up to ensure profitability.
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Customer Places an Order – When a customer buys a product, the order is forwarded to the supplier.
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Supplier Ships the Product – The supplier fulfills the order and ships it directly to the customer.
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Profit is Earned – The difference between the supplier’s price and the retail price set by the store owner is the profit.
