Dropshipping - Term Overview

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The meaning of dropshipping is a type of retail sale, where the retailer doesn't keep the goods at their facilities, but instead transfers the customer's order and shipping details to the wholesaler, who must directly dispatch the merchandise to the customer. The difference between the wholesale price and the retail price will be the profit of the retailer.

Another definition of dropshipping to better understand this concept can be the logistics management system where electronic commerce offers for sale items that it doesn't have, but are owned by the wholesaler, who will be in charge of preparing the order and sending it to the customer. Therefore, the online store should only worry about attracting customers and retaining them.

Dropshipping in e-Commerce

This e-Commerce model is an important advantage for those who want to set up an electronic store quickly and easily. And it's that with a small initial investment you can have an online business and the only costs that you will face are those that come from the design of the virtual store, in addition to the domain and hosting.

In this sales method, the person or company that starts the e-commerce acts as an intermediary between the manufacturer of the product and the user interested in acquiring it. It's not necessary to physically dispose of the items you offer on your website or store, so it will not be necessary to have a storage space.

The manufacturer will take care of the entire shipping process. At the time of including a shipping address, the one that corresponds to the customer must be entered in the order, so that the item reaches their home address and not yours. To make the request to the dropshipper, the customer must pay it first, so that you can purchase it for the lowest price and thus save your profit.

The advantages of dropshipping, therefore, is interesting for e-Commerce businesses that don't want to make a high investment or that lack physical space.

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