Dropshipping is an e-commerce model in which the seller does not store products in his own warehouse. After purchase, information about the order goes to the wholesaler or manufacturer, who prepares the shipment for the customer.
Advantages and limitations of dropshipping
The model allows you to start selling with a smaller stock of goods and reduce storage costs. It also makes it easier to test new product categories.
The seller is still responsible to the customer for the order process, communication, returns and compliance of the offer. It may be more difficult to control the quality of packaging, delivery time and current stock levels. Therefore, efficient data integration and a precise contract with the supplier are important.
