What is drop shipping?

Dropshipping is different from traditional e-commerce models—it allows sellers to fulfill orders without holding any inventory. It is a popular no-inventory business model widely used by foreign entrepreneurs.

When a customer places an order, the dropshipping seller forwards it to a supplier, who then ships the product directly to the customer on behalf of the seller. Essentially, the dropshipping seller acts as a middleman, buying and reselling products without handling stock.

Advantages of Dropshipping

1.Low Risk

No need to purchase inventory upfront

No storage costs or risk of price fluctuations or unsold stock

2.Low Cost

No warehousing, shipping, or packaging expenses

No need for a dedicated customer service team

Main costs are focused on marketing and traffic acquisition

3.Geographic Arbitrage

With just a computer, an internet connection, and an online store, a dropshipping business can be run from anywhere in the world

As shown in the image, a dropshipping seller lists supplier-provided products on their website and focuses solely on marketing and product selection. Compared to traditional e-commerce, dropshipping is a more accessible and cost-effective option for entrepreneurs.

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