With a traditional selling model you need to have stock readily available before you can list and sell them. This means you have to outlay a large amount of capital to purchase the stock, you also need to have a physical location to store the stock. When an order is received you need to physically pick and pack the stock so that it can be dispatched.
Drop shipping is designed to free up both your capital and your time. With drop shipping you essentially list products for sale that you can obtain from a supplier, however you only purchase the item once you have a confirmed order.
When you receive an order you simply purchase the products from the supplier and ship it directly to your customer. This means you do not need to pay for the stock in advance or even physically handle the stock.
- to find a supplier who drop ships items
- you list the suppliers products on your website
- customer views the products on your website
- customer purchases an item
- you receive the money from the customer
- you place an order with the supplier for that product
- you ship the product to the customer
- customer receives the product