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What is Dropshiping?

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  1. #1
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    What is Dropshiping?

    Can anyone tell me what is Dropshiping? and how does it work?

  2. #2
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    The simpple asswer for dropshipping is to buy at a low price and sell at a higher price. The difference between the selling price and the purchase price is the profit earned.

    Dropshipping is an obvious thing that exists in every area and corner of society. You can see as simple as supermarkets, grocery stores, toy shops ... all of them mostly import products from other suppliers and then sell them at a higher price to make a profit.

    How does it work?
    How does dropshipping work, basic dropshipping instructions,... you look at the following description picture:

    Name:  what-is-dropshipping.png
Views: 72
Size:  140.7 KB

    Explains:
    Customers buy products from you.
    You send customer information to suppliers: Information about goods, delivery address.
    The supplier sends the product to your customer address.
    You are paying money to suppliers after receiving payment for products purchased from customers. Moreover, you can sell products at any price that can be profitable for you.
    The above process repeats itself. All customers coming to you will be handled by you.

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    Dropshipping is simply selling products to a buyer before you physically have the product. Then after somebody buys from you, you go to the place that actually sells the product and ship it directly to the buyers address.

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    Quote Originally Posted by smcquade View Post
    You go to the place that actually sells the product and ship it directly to the buyers address.
    How will happen if the place didn't have the products? is there a way to tell your customers the status of products from providers before they make a purchase?

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    When you see dropshipping seo offered as a service you can brand it as your own and outsource to the seo dropship company. A whitelabel is a predesigned site you personalise sometimes supplied by these companies. I refer these services.

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    Well, The term drop shipping is an idea of a wholesale drop shipper (means the supplier) who offers you the option of selling products without actually buying them first or a drop shipping is a fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer

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    I always refer to the wiki about of any questions. There is written very clearly about dropshipping.

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    Dropshipping is a method in which you as the seller do not keep the products in your inventory, instead you work with a supplier who sends the products directly to your buyers.

    Your profit comes from the price difference between the payment you receive from the buyer and the amount you paid to your supplier.

    An example:

    You sell cameras on eBay for $400
    A customer from USA (John) buys a camera from you
    You contact your supplier in the UK and provide him the shipping details of John.
    You pay your supplier $300 and he ships it to John.
    Your gross margin is $400–300=$100

    Of course $100 is not your net profit since you have to pay:

    eBay fees
    paypal fees

    Take into account additional costs: utilities, bookkeeping, risk of fraud/return

    It’s important to work only with reliable suppliers.

  9. #9
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    Quote Originally Posted by lkovnih226 View Post
    Can anyone tell me what is Dropshiping? and how does it work?
    Drop-shipping is just a retail pride method by which a store does not maintain these products it sells in stock exchange. Each time something is sold by a store, it has it sent to the client and purchases the thing. Consequently, this exact merchandise is never seen or else manages by the retailer.

  10. The Following User Says Thank You to ethelglover For This Useful Post:
    tanikacampos (02-25-2019)

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