Dropshippping is an e-commerce selling method that involves selling products online before they are ordered.
The method of Dropshipping consists in selling a product to a customer online, then placing this order to his supplier who takes care of shipping it directly to the customer.
Dropshipping is a great way to reduce inventory costs .
The needs are low in this area, as well as those related to cash. It is therefore possible to start the activity without necessarily having a very important capital. Dropshipping also gives us the ability to offer a much more diverse range of choices to our customers, compared to self-financing stocks, where we will quickly be limited in the choices available to the customer.
However, dropshipping does not give you control over the sales process. Indeed, if we have the possibility of getting closer to the customer and taking him to the act of purchase; as far as shipping is concerned, this is in the hands of your supplier and we are no longer in control of the situation at that time. Also, communicating with the supplier must be done impeccably and instantly in order to have a clear idea of the stocks. It could be problematic to offer customers products that are out of stock at your supplier.
The technique of dropshipping is effective in online sales although it is important to take into account all aspects of this mode of business. Ideal for testing a market, getting into e-commerce or limiting your expenses, it nevertheless includes risks mainly linked to the relations between the supplier and you.