Dropshipping - what is behind direct shipping?
Dropshipping Or even Drop shipping or drop shipping Is a type of online trading, where products are offered online, with wholesalers taking care of storage and shipping. The orders are forwarded to the wholesaler or dropshipper, who sends the goods directly to the customers.
The provider has the option of a online marketplace to use to market products there, or he creates one own online store. In the case of an online shop, it is not clear to customers whether it is a dropshipping model or not. Customers do not come into contact with the wholesaler. For online marketplaces, you usually have to pay commissions and fees. However, dropshipping can be worthwhile if you want to try out products to expand your range of products.
Dropshipping is advertised as a lucrative business model that makes it easy to earn money. However, to do this, you have to work in marketing plug in. Many who do dropshipping are therefore also influencers.
Which products at which price?
It is common to offer products that are in trend are. This also means that the offer should be adjusted again and again. Nor should you sell products indiscriminately, but yourself a strategy consider which segment or which niche You operate and which pricing strategy you want to use. Because the competition may be very large depending on the product. Adding a flat percentage to the purchase price is not always the best or only solution.
What advantages and disadvantages do you have as a result?
One disadvantage of dropshipping is that margins low may fail. It is disadvantageous for them that they have the Product quality and cannot influence shipping. It is advantageous that providers have no effort with a warehouse. However, this also makes the returnsthat you have to organize. In addition, they have no contact with their products, which makes quality assurance difficult.
