Drop shipping | Meaning, Model,Working, How to start
Drop shipping, In today’s expensive world we all want to have our wished things in our hand. But to have it, it needs money. So need of money is the main point.
So from where to get money? The answer is simple. We can get money by doing some work either directly or indirectly. But doing work needs hard work. So is everyone ready for it? Yes, everyone is.
Moreover, now we will talk about some ideas or ways to earn money. And internet is the big source of it.
As we see, in today’s world online marketing have become normal for many of us. We can easily get money through it. it is one of those. But what is drop shipping? From where we can start it? What are the advantages and disadvantages of it?
There are many questions, so here we start to know about drop shipping.
Drop shipping:
it (e.g. Amazon, or any online store) is the supply chain model of online marketing in which the producer or retailer don’t have to worry for his product to sell. It can be done by drop shippers. Drop shippers work as a intermediate person between the supplier and the customer. They transfer the order information to suppliers of the product and dispatches the product to the customers.
The chain which includes this process between the supplier, inter mediator and the customer is known as drop shipping model.
The involving of supplier, inter mediator and customer is a model. When a customer orders any product from the drop shipping store then the drop shipper transfers the information of customer to the supplier. And since, the process is completed by the supplier by supplying the product to the customer through drop shipping store. Through this, the drop shipping store makes the high profit by selling the product for higher price.
For example, if any product (Cricut Explore air 2) contains the price of Rs. 300 when bought from the supplier directly but when bought from the drop shipping store it contains the price of either Rs.350 or Rs.400. And this makes the direct profit of Rs.50/100.
Advantages :
- First you can set your own prices.
- Second, Low barrier to entry.
- Third, Minimum risk.
- Fourth, Increases wholesale buyers.
- Fifth, save money, time and effort.
Disadvantages :
- First, Managing order can be burden.
- Second, Inventory issues and miscommunication.
- Third, Customer loses quality controls.
Also Read: How to start a Business in 2020 | Online & Retail Startup Strategies
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