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What Is Dropshipping?

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Dropshipping is the process by which a product is moved directly from the manufacturer to the customer. Dropshipping makes the transporting of products easier and faster, saving time and money. Start a dropshipping business on Shopify to increase sales and customer satisfaction. This is when the store does not keep the product in stock but uses a third party to directly ship the product to the customer. It is important to keep track of all your dropshipping products and to have an up-to-date inventory. Staying organized is key to running a successful Shopify shop. Having a close relationship with stores worldwide makes dropshipping run more efficiently.

what is Dropshipping

The advantages of Dropshipping are

  1. Saving money by already collecting money from customers when purchasing a product. This will ensure the purchase and is less time-consuming. Without upfront inventory investment, merchants can run a successful business with less money and no commitment. Dropshipping can run smoothly if done correctly. 
  2. Wide range of possible products for customers to choose from. When dropshipping merchants are able to give what your customers want instead of assuming what is currently selling. Merchants are able to sell products from any location making your Shopify store a winning store. Dropshipping gives you the ability to create different niches across your store.
  3.  Avoid more steps than needed by engaging in the dropshipping process that buys and sells products from point a to point b.

 

Disadvantages of Dropshipping are 

  1. Dealing with inventory issues can get in the way of dropshipping, since merchants are not carrying the products in the store, merchants need to be up to date and view changes over time. Merchants need to be careful when promising customers when they will receive the product. Dropshipping can be unreliable which will lead to negative reviews, fewer customers, and a decrease in sales.
  2. When dropshipping you may have complications with shipping. A customer may want to purchase more than one product from different suppliers. This can get messy and complicated if you do not pay attention to the tracking and something goes wrong. Merchants need to always keep up with the product when dropshipping. As well as the branding can be off, since we’re not directly selling the product from your shop there can be many mistakes and errors when dropshipping.
  3. The packaging can turn up messy, which leads to unhappy customers. Dropshipping can be risky and unpredictable. Be careful when dropshipping, make sure to read customer reviews about the product before sending it off to your customers.

 

So why Dropshipping? 

When Dropshipping you can gain many benefits such as more customers which increase your sales and save you time resulting in positive customer reviews. Dropshipping is a good way to give the customers a wider range of products. Dropshipping opens up more opportunities bringing flexibility and possibility to the business. There are many challenges in Dropshipping that can be avoided. Make sure to educate yourself on the details of the product. Such as where it comes from and who else is selling it to avoid competition. Dropshipping can lead merchants to a high level of competition so make sure to know how to satisfy the customers. Many Shopify store merchants are turning to dropshipping, making shopping easier for people. 

For a better understanding check out what Shopify has to say about Dropshipping!