If you're into online world, you've definitely heard about Dropshipping. Dropshipping is a form of internet business that can make a prospective ecommerce entrepreneur a lot of money.

Before we go forward, you should know the answer to the question, "What is Dropshipping and how does it work?"

What is Dropshipping?

Dropshipping is a type of retail fulfilment in which a store does not hold stock of the items it sells.

Instead, it buys the item from a third party and has it delivered to the buyer directly. As a result, the seller is relieved of having to deal with the product directly.

What Is a Dropshipper?

A dropshipper is a manufacturer or supplier who manages inventory for a retail merchant and ships orders to their customer.

Advantages of Dropshipping

1. It easy to set up 2. Doesn’t require an office 3. It is scalable 4. It is flexible 5. It is simpler to manage 6. Lower Startup Cost

Disadvantages of Dropshipping

1. Low Margins 2. Increased Customer Service Issues 3. Can complicate order processing 4. It doesn’t give you a lot of control

Is Dropshipping Profitable?

Yes! It's a low-risk strategic approach that doesn't have the high costs that a wholesaler has, and with the appropriate suppliers, you can make a good profit margin.

The Dropshipping Process

Let's talk about how Dropshipping works now that we've discussed what it is.

1. The manufacturer creates the products and sells them in bulk to suppliers and wholesalers. 2. Suppliers and wholesalers sell the products to retailers. 3. Retailers sell the products to consumers.