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What is Dropshipping? - Noteworthy Businesses

Dropshipping – Everything you need to know about it

So what is dropshipping and why is it beneficial?Retail and supply chain management has come a long way in the past few years. The advent of technology has further reshaped the way retailers and manufacturers carry out their e-commerce business. To make the most of what is available in the market, retailers are turning toward various shipping methods to ensure that their sales numbers are always high.

When it comes to boosting revenue, dropshipping is one of the ways e-commerce retailers begin with minimal investment. So, let us move ahead with what exactly drop shipping means and how it affects a retailers e-commerce business.

What is dropshipping?

Drop shipping is a retail method where a store doesn’t keep the products in stock. Instead, when a store sells a product, it purchases the item from a third party and has it delivered directly to the customer.

To elaborate further, the major difference between dropshipping and the standard retail model is that the selling merchant doesn’t own inventory. Rather, they purchase inventory as, and when, needed from a third party to fulfill orders.

Now, that you know what is dropshipping, the chief concern would be to not land yourself in legal trouble due to practicing this method.

Is drop shipping legal or illegal?

Yes, drop shipping is legal although it does require the retailers to be very careful of the product they take the order of and deliver to the customers. Also, it is better, in any case, to follow and ensure that your new business is not breaking any laws. One of the most legal concerning areas of dropshipping is taxes. Therefore, make sure that when you begin your drop shipping business you talk to your accountant or CPA to be sure you meet all the tax and legal criteria.

Subsequently, one more question arises when people mention drop shipping, whether this e-commerce practice is profitable for the retailers.

Is drop shipping profitable?

As the retailer or the supplier handles fulfillment of only those goods and products that are ordered by the customers, the handling charges go down, thus making a profit from the start. Also, when the supplier doesn’t need to invest in a bunch of inventory and stores up front, the amount paid is only for the products that are sold. However, the profits can be of a thin margin, but it is easier and most importantly, legal to earn a quick profit this way.

The benefits of adopting the drop-shipping strategy for your e-commerce retail business

Although it sounds perfectly rational to follow the drop shipping method based on the information provided above, it would still not be a poor idea to know a little more as to why you should drive your e-commerce business toward drop shipping.

1. You require less capital to start with as there is no need for you to set up a store or any inventory
2. This business is easy to scale
3. You can offer a wide range of products to your customers

Now that you know the basics of what is dropshipping, it is important to get the best training and platform possible. This will ensure your success from the start. I highly recommend Drop Gecko, as it has excellent training and makes this business approach super simple. The benefits include:

  • Your Own eCommerce Store Live & Open For Business In Under 10 Minutes
  • 100% Cloud Based, Nothing to Download, Install & No Hosting Fees
  • Guaranteed HOT Selling Products & Very Newbie Friendly Profit System
  • Automatic, One-Click Order & Delivery With Included Chrome Extension



If this sounds interesting to you, click here to check it out now.


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