Start online store without inventory – dropshipping

selling products online without inventory

Having an online shop brings many possibilities. The advantage of having e-store is a reduction in costs due to the lack of necessity to maintain a stationary store, by applying new solutions available on e-commerce. One of the innovative and convenient ideas is to run an online store without using the warehouse. What is dropshipping and what benefits it brings?

Dropshipping is an online sales model that is gaining popularity among e-business owners every day. It allows selling products online without inventory. This model is based on the process of shipment of goods to the customer from an online store to a warehouse. The buyer makes the purchase in the e-store, but the parcel is being sent from the warehouse. Having a dropshipping  gives you the possibility to eliminate the need of having a warehouse as well as dealing with the delivery process.

Now as you know what is droppshiping the question arises how it might look in practice. The sale process in dropshipping, or store without a warehouse, is as follows:

1. The customer places an order in the online store. What is very important is that the store has the current stock list of wholesale, on its website ( this is possible thanks to integration with wholesalers, which ensures the condition of the assortment);
2.  The buyer makes the payment;
3.  The store sends a request to the warehouse regarding the order realsiation, with the set price deducted from its margin amount
4. The wholesaler sends the goods directly to the customer.

Advantages of dropshipping

• The biggest advantage of an online store without a warehouse is the low cost of setting up and running a business
• If you have a dream to run a business from anywhere, dropshipping is a perfect choice for you. You can manage orders and promote your store by relaxing by the beach.
• Wholesalers that have dropshipping model in their offer are most often large players. That’s why their offer includes a wide range of products. At the beginning of the business, you might not have the possibility of having an impressive range of goods, that’s why it is worth to start selling in a dropshipping model. This will atract more visitors to your website.
• Many entrepreneurs search for certain business ideas on which they can earn money immidtadley. There is no guarantee of success, although you can try to increase your chances by checking what are the risks in the chosen business industry. In order to minimize risk in the very beginning of your business a store without a warehouse is a great idea,  if you manage to make money in this model, you will be able to consider investment in the development of your shop.

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Disadvantages of Dropshipping

Despite many advantages, this model also has disadvantages:

• Dependency on the offer of wholesalers;
• Lack of full control over the process of order fulfillment.

Summary

The dropshipping model has many advantages – the biggest ones are low risk and minimized costs. Can this form of sales work in your business?  We hope this article will help you to find the answer.