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Dropshipping – Sell without buying inventory

Description

Dropshipping allows you to sell to customers, set up an online store and even create your own brand without having to waste money on inventory. With dropshipping services you:

  1. Offer products on your e-commerce store or website.
  2. The customer pays you for the order.
  3. You place the order with the dropshipper.
  4. The dropshipper sends the product directly to your customer.

Advantages

  • 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.

Disadvantages

  • 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.

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