What Is Dropshipping Business?
What is dropshipping business? Dropshipping industry is a growing retail model in which the retailer or the selling shop does not own or stock the inventory sold. Instead, when a store owner obtains an order form from an individual customer, they instead purchase these items from either a third-party distributor that warehouses the items for them or a dropshipping company that offers the items on consignment. Instead of stocking the items, dropshipping companies only carry the inventory. They do not hold any items themselves. The difference between the actual cost of the items sold and the amount a retailer pays to the drop shipper is their profit. Thus, when a retailer sells an item and buys from a dropshipper, the retailer makes money that is subtracted from their sales.
There are many dropshipping businesses in the eCommerce space, and with a little research, you can benefit from this model as well.