Drop Shipping is a model of a retail business in which the seller does not need to have items in his warehouse. Instead, when the buyer gets something, he orders goods from a supplier, and the supplier packs and sends the item directly to the buyer.
How it works can be seen in the diagram below:
1. You get information from us with descriptions and photographs of the product. Then you place this information on your online stores.
2. Customer buys the items from your online shop.
3. Client pays you the full Retail item’s price plus shipping.
4. You place an order on our site and pay us Wholesale price plus shipping. (The difference between Retail and Wholesale price is your Profit)
5. We ship the goods to the address you provided us when you placed the order.
This model has several advantages:
1. You do not need to have your own warehouse.
2. A large number of products. You can sell any product that is available in our warehouse, you do not need to worry about goods’ purchase to be in stock.
3. Just start your business. You do not need to hire staff, to pay rent for the warehouse, to arrange goods’ shipping.
4. Convenient location. You can establish your own online business right at home. You do not need to have a huge investment to build a business. No need to create showroom.
5. Easily scale business. You simply add a new item to your storefronts, no need to order goods previously.