How Does Dropshipping Work?

Are you thinking about working with dropshipping partners and creating a new business on Shopify or another website? Using some dropshipping apps and themes from Shopify, you can easily create a dropshipping website. However, if you want to start, you might need to ask the question: ‘how does dropshipping work?’ In this article, we look at the question and give a quick solution.

The History of Dropshipping?

Dropshipping is a great business model that was started in the 1950s. In the old days, before the internet it was common for salesmen to create catalogues that combined the listings from many different sellers like large houseware brands and customers would call the salesperson to order the products. The salesperson would then order the products from the companies and would combine the order at their own business to forward the products to the customer.

There were many failures when it comes to this model back then. Some products might go out of stock, customers realised that some products were overpriced because they could order the products from the brands direct and there were delivery delays.

However, the internet has revolutionised the business model.

How Does Dropshipping Work in the Modern Day?

Nowadays the internet has streamlined the process. While the seller is still listing the products on a single website and can use numerous brands to create the listings they have, they no longer have to do several of the processes that they used to have to do.

For starters, the merchants are now normally large B2B businesses, and no longer B2C. Therefore, customers can’t always directly order the products. In addition, the merchants will often send the products directly to the audience. This can help you spend more time on marketing and less time on order fulfilment.

In addition, there are ways that the seller can control the stock easier because with apps like Oberlo, then the stock of the merchant can be monitored and when the merchant is out of stock, it is no longer listed on the seller’s website.

Advantages of Dropshipping

There are numerous advantages of dropshipping. The first is that you can build better marketing campaigns. Another advantage is that you can save on money. You don’t need to have the facilities to take in orders or send them out. This is all done by the merchant and therefore you can save on money. In addition, you don’t need to have your money tied up in stock. You only pay for stock when you have an order and only for the stock that you need.

Of course, there are also some disadvantages, such as lack of quality control and sometimes delivery times can be lengthy. But this can be the same in some other business models and you can get around this by ordering samples and testing the process before you go live.

Final Word: How Does Dropshipping Work

Have you asked the question: ‘how does dropshipping work?’ Then above we have given a simple explanation for you. You can start your Shopify website now to help you create a dropshipping website in just a few hours.