Wednesday, 25 January 2017

What is dropshipping and how does it work?

 Some retailers choose to use dropshipping as it is a way they can sell to the public without having to actually hold any of the stock. Retailers sell their products by sending the orders they receive over to their dropship supplier. The supplier is then responsible for shipping the product and processing the payment. The retailer is then sent any difference between the amount they make for the product and the amount you charge for it. 

Retailers never get the product or handle them so there aren’t any payments for handling or processing to worry about.  Some suppliers do let the retailers handle the payment process and some allow the retailer to find their own shipping company and form a contract with them. However, by choosing own shipping company and processing payments the retailer is defeating the purpose of using a dropshipper in the first place.

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