Not all companies have the possibility to produce and distribute, just as there are companies that only need the product to market it, without having to buy their stock in large quantities. That is when we enter into the world of Dropshipping.

Therefore, the e-commerce strategy focused on creating the distribution of products or services is born, where they are obtained from the supplier (at a base price) and once the sale is closed, it is requested that the same be sent.

Dropshipping is a business model that allows you to sell third-party products to your own customers through the internet and through your e-commerce platform.

Dropshipping is a popular way to sell online, in which as we already mentioned, you don’t need a physical store, or a warehouse with product.

When a store sells a product, it purchases it from a third party and sends it directly to the customer. In other words, with this method, the owner of the online store never sees the product, it simply appears as an intermediary between the product and the customer.

Sounds good, doesn’t it?

It is also an advantage for those who seek to create an e-commerce easily and do not have the necessary resources to face the investment in merchandise and storage expenses.

The important thing about dropshipping lies in finding a niche and offering them an attractive product for that market. And even when you have several years in the market, there are many possibilities to enter this type of business.

Benefits of Dropshipping as an online business model

1. Financially, the risk is less than traditional e-commerce
2. Your investment is limited to a good online platform. A communication strategy to spread your brand and the advantages of buying in your store.
3. Responsibilities are minimized, allowing you to adapt more quickly to the imperatives of online commerce.
4. Being able to dedicate bigger resources to develop an effective sales strategy.
5. Your main task is to sell. Therefore, you will have more possibilities to carry out creative actions. You can make a difference with your competitors and invest daily time in analyzing your website, your online marketing actions or how to capture leads, or establish business alliances.

Weakness of Dropshipping

1. The profit margins are low, because dropshipping is very competitive and when being economic, the price of the product is very low.
2. Making an inventory will be something complicated, because of not having a real stock, it will constantly change, so you have to be careful that, in some way, you can have a synchronization method with your suppliers.
3. Shipments become complex, as you will remember, you are an intermediary and your supplier or suppliers are the ones who will send the product, so your shipping costs will be higher.

The dropshipping is not perfect, nor a stress-free way to build a successful business, but it does allow the creation of companies that are dedicated to meet the needs of other companies in their distribution channels.

Well, now that you know what Dropshipping is, its pros and cons, what do you think? Would you use it?

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