If you wish to get started with an e-commerce business where you do not have to get started with a lot of money in hand, and with no warehouse too, then dropshipping is the business model for you. You need to understand that dropshipping is not something that every entrepreneur would be interested in. There surely is a tradeoff that exists between a dropshipper and a traditional wholesaling business.
If your aim is to be counted amongst successful amazon dropshipping suppliers then you need to understand the basics of dropshipping and how it works. It is a business model by which you can sell and ship products that you primarily do not own or not even have in stock.
Who would be your supplier then?
They would be the manufacturers or even the wholesalers who manufacture goods, they also warehouse them. When a particular item is needed, they will ship it to your set of customers on your behalf.
It is quite an easy process:
- Order is received by you
- You forward the details to your supplier
- The order gets fulfilled through your supplier
Amazon and GoTen.com are amongst the few top best dropshipping companies that you can rely on and trust. If you wish to know more about the benefits of dropshipping then please read below:
- Extremely low cost for the start-up
When it comes to stocking a warehouse, a lot of capital is required. But now with a dropshipping business, you can feel happy that you will not have to undergo debt to commence the business. Rather than sending on extensive inventory, and not knowing whether all of it gets sold, with zero finance you can start a dropshipping business. In no time you will have money trickling into your account.
- Order fulfillment expenses are very low
In the case of fulfillment of an order, there are several factors to consider. From tracking to labeling, organizing the products, a warehouse, shipping of products, and lots of more work. But when you get your items dropshipped through a third party, you do not have to worry about any of it.