Dropshipping is a business model in which ecommerce entrepreneurs sell products without having to carry any inventory. When an entrepreneur finds a product they’d like to sell, they simply partner with a dropship supplier who will ship the products directly to the customer on the entrepreneur’s behalf. Dropshipping is a great way to start an online business with little upfront investment, but it’s not without its challenges. One of the biggest questions new entrepreneurs have is: do I do the actual ordering when dropshipping? In this post, we’ll answer that question and explore the ins and outs of dropshipping so you can make an informed decision about whether it’s right for you.
How Does Dropshipping Work?
Dropshipping is a business model in which ecommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s doorsteps. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
Who Does the Ordering When Dropshipping?
When dropshipping, the store owner is responsible for placing the orders with the suppliers. This can be done manually or through an integration.
If you are dropshipping with Shopify, you can use a app like Oberlo to place your orders automatically. Oberlo will add the products to your cart and checkout for you. All you need to do is pay for the order and it will be sent directly to your customer.
If you are using another platform, you will need to place the orders manually. This means adding the products to your cart on the supplier’s website and checking out as if you were a customer. Be sure to include the customer’s shipping information so that they receive their order promptly.
The Advantages of Dropshipping
Dropshipping is a business model where ecommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping is a popular business model for new ecommerce entrepreneurs because it’s simple to set up and manage, and it doesn’t require a large up-front investment.
There are several advantages of dropshipping:
1. Low Start-Up Costs: Since you don’t need to purchase any inventory upfront, you can start your dropshipping business with very little money. All you need is a domain name, hosting, and WooCommerce (or another ecommerce platform). You can even find free WooCommerce themes and plugins to help you get started.
2. No Inventory Management: One of the biggest pains of running an ecommerce store is managing inventory. With dropshipping, you never have to worry about stocking or overstocking products. Your suppliers will handle all of the inventory for you so you can focus on other parts of your business.
3. Increased Flexibility: Dropshipping also gives you more flexibility than other types of businesses. For example, if you want to add a new product to your store, you can simply contact your supplier and add it to your catalog with no hassle.
The Disadvantages of Dropshipping
There are several disadvantages of dropshipping that should be considered before starting a business using this model. One of the biggest disadvantages is the lack of control over inventory and shipping. Because the supplier handles inventory and shipping, there is a greater chance for error and delays. This can lead to unhappy customers and lost sales.
Another disadvantage of dropshipping is the margin for error is much smaller than with other business models. With dropshipping, every order must be perfect because there is no room for error when dealing with customers’ money. Any mistakes can lead to costly refunds or chargebacks.
Finally, dropshipping businesses can be difficult to scale. Because of the low margins and lack of control over inventory and shipping, it can be hard to make enough profit to reinvest back into the business to grow it. For these reasons, dropshipping may not be the best option for everyone.
Conclusion
Dropshipping is a great way to start an ecommerce business with little to no upfront investment. And one of the best things about dropshipping is that you don’t have to worry about stocking or shipping inventory yourself. But what about actually placing the orders with your suppliers? In this article, we’ll answer that question and give you some tips on how to place dropship orders effectively.
