The dropshipping business model
- You receive an order and payment for a product listed on your website
- You pass this order, plus shipment details, to a supplier, typically a brand or a wholesaler you’ve built a relationship with, and pay them a discounted price for the item
- The supplier prepares the order, with neutral packaging and no pricing on the invoice.
- Supplier ships the order directly to your customer and you are notified about the delivery status.
You never need to buy inventory ahead of time – you don’t need to invest your own money to get off the ground.
You don’t need to manage or handle the product yourself, so you won’t have the stress of managing stock, sorting out storage space or spending time and money making sure orders are delivered on time.
You make a solid profit on the difference between your retail price and the item cost – good for you, good for your supplier, good for the customer. Everybody wins.
It’s that easy.