What Is Drop Ship Model

Although drop shipping is a great way to test a new product or supplier it has limitations as a viable long term business model.

What is drop ship model. As the marketplace gets saturated with competitors its likely you will be forced to compete on priceunfortunately the drop shipping model is not conducive to a low price strategy with the inherent high cost of goods. Dropshipping is a retail fulfillment method where a store doesnt keep the products it sells in stock. The fact is selling online isnt easy.

Instead of purchasing a large amount of inventory you simply partner with a drop shipping supplier and list their merchandise for sale. On the other hand it is also risky and least preferred model. It is easy to start an ecommerce business with drop shipping as it does not require any huge initial investment.

The drop shipping model for selling online also is a good business model for someone just starting out selling online. A fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer. As a result the seller doesnt have to handle the product directly.

Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers its customers orders and shipment details to either the manufacturer another retailer or a wholesaler who then ships the goods directly to the customer.