Dropshipping is an order fulfillment method that gives you the ability to sell products, without ever having to hold inventory.
It’s a great way to build your business quickly and for a fraction of the cost of traditional, overwhelmingly large scale manufacturing. By picking up a few products instead of tens of thousands, you can keep your overhead down, focus on improving pricing, and reap the short-term benefits of improved market visibility.
But first, let’s start with the pros of dropshipping:
Dropshipping gives you the opportunity to start an eCommerce business with very little upfront costs, and a low barrier to entry.
● You don’t worry about inventory and shipping
● No warehousing costs
● Products are ready to ship
● You can work from anywhere, at any time.
Dropshipping gives you the freedom to expand your business the way you want to. You can spend more time making the business run as easily as possible, because it keeps you from having to worry about product inventory shortages, keeping costs down, or capacity planning for the future.
And now the challenges:
● Low-profit margins (initially)
● There’s a lot of competition
● You have very little control over the supply chain
● It can be difficult to build a brand
Successful dropshipping starts with picking the right products, suppliers, and technology partners.
Your suppliers’ unsatisfactory shipping packaging and delays on order fulfillments will ultimately reflect poorly on your business. Take the extra time to thoroughly vet all of your suppliers.
thanks a research article from alibaba