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Essay On Dropshipping Business

773 Words4 Pages

Dropshipping Business --
Dropshipping is the idea which has brought a revolutionary change in the business world. From Amazon to Snapdeal, flipkart or shopclues, most of the online multi sellers use dropshipping for their business. So let us first understand what dropshipping is all about. Obviously it is not about dropping someone from a ship. It is a term used by businesses that do not own or keep stock of the products they sell. When an order or demand comes for the product, it is sourced from the manufacturer or seller and delivered to the customer by the shipping company.

In this scenario the business who is actually getting the order of the product, never sees the real product or its condition. As per the contract with the seller or manufacturer, it just forwards the order to the other company and takes its percentage share in between. Branding and packaging material is provided to the …show more content…

The businessmen has to just focus on marketing and getting customers without worrying about packaging, storing and delivering the products.
The overhead expenses of an online business is quite low. There is no worry about the infrastructure, office supplies and rent for a startup. Most start up business can be operated from home.
Such a business offers flexibility of location
A dropshipping business can offer an amazing catalog of long list of products. With dropshipping it is possible that one business can sell anything right from a hairpin to a advanced machine.But the main talent lies in the communication skills of the person to convince wholesalers to supply products to him.
The scope to expand business is easier and faster in this method of business.
Disadvantages --
The margin is quite low in the dropshipping model. Marketing costs needs to be incured, plus the supplier would keep his markup. This makes it very difficult to gain higher returns, keeping in mind the growing competition in the

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