Dropshipping allows you to sell to customers, set up on online store and even create your own brand without having to waste money on inventory.
With dropshipping services you:
- Offer products on on your e-commerce store or website.
- The customer pays you for the order.
- You place the order with the dropshipper.
- The dropshipper sends the product directly to your customer.
- The biggest advantage has to be that you don´t need to invest a large amount upfront to buy stock.
- You also don´t waste stock (and create more environmental pollution) when the products don´t sell. As the customer pays you first, you are only ´spending´ the money you already have.
You are relying on the dropshipper to offer a good product and a good service. Any problems will reflect on you and your brand and any bad reviews will affect your business.
- If a customer wants to return a defective product, you will liable for the cost. Even if the supplier accepts returns, you make have to take a loss if you want to refund the client quickly to keep them happy. This is not such a problem if it is a low-cost item, but on big ticket items you need to budget for possible returns.