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What is Dropshipping? #dropshipping #amazon #walmart
Dropshipping is a retail fulfillment method where an online store does not keep the products it sells in stock. Instead, when a customer places an order, the store purchases the item(s) from a third-party supplier and has it shipped directly to the customer. The store owner never physically handles the product.
In a dropshipping business, the seller acts as a middleman between the customer and the supplier, earning a profit on the difference between the wholesale price paid to the supplier and the retail price charged to the customer. This allows the seller to offer a wide variety of products without having to invest in inventory or worry about shipping and handling.
The dropshipping model has become popular in recent years due to its low startup costs and ease of entry. With dropshipping, sellers can launch an online store with minimal upfront investment, since they do not need to purchase and store inventory. This makes it an attractive option for entrepreneurs who want to start an online business without a large initial investment.
However, dropshipping also has some drawbacks. Since the seller has little control over the supply chain, they may experience longer shipping times, out-of-stock items, and quality issues. In addition, since the seller is not physically handling the products, they have limited ability to inspect the items for quality before they are shipped to the customer.
Overall, dropshipping can be a viable business model for some entrepreneurs, but it requires careful planning and execution to be successful.
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