What is Dropshipping?

Dropshipping works by allowing businesses to offer a wider range of products without having to invest in expensive inventory upfront. When a customer places an order in a dropshipping store, the store purchases the product from the supplier and has it shipped directly to the customer. This eliminates the need for the store to purchase and store inventory, saving them money and reducing the risk of stock shortages or overstocking.

Dropshipping allows eCommerce businesses to launch and grow quickly, without having to invest large amounts of capital into inventory. It also makes it possible for businesses to offer a wide range of products, without having to worry about stocking and managing inventory.

In addition to its benefits, dropshipping also has its downsides, such as the lack of control over product quality and shipping times. Since the store does not physically have the product in stock, they may have limited ability to control the quality of the products. Additionally, as the store is relying on the supplier to ship the orders directly to the customers, they may have limited visibility into the shipping process and may be unable to provide detailed tracking information to customers or ensure that orders arrive in a timely manner.

On the same note, businesses may have limited ability to customize the product or packaging, which can impact the customer experience.