Understanding Dropshipping – What are the Benefits?
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.
The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the merchant purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders.
The Supply Chain & Fulfillment Process
“Supply chain” is a fancy term describing the path a product takes to go from conception through manufacturing and finally into the hands of a customer. If we were talking with hard-core supplier chain gurus, they’d insist a product’s supply chain reaches all the way to the mining of the materials (like oil and rubber) used to manufacture an item. But that’s a little intense.
For the purposes of this guide, we don’t need to get quite that detailed. You simply need to understand the three most applicable players that make up the dropshipping supply chain: manufacturers, wholesalers, and retailers.
What is Shopify?
So where do I begin?
At Wonify, we have you covered. Whether you are looking for trending products for your current e-commerce store or looking for help getting your off the ground, we have the right solution for you!
Picking Products to Dropship
The biggest hurdle most new dropshipping entrepreneurs face is picking a niche and products to focus on. And it’s understandable – it’s likely the biggest decision you’ll make and has long-term consequences on the success or failure of the business.
The most common mistake at this stage is picking a product based on personal interest or passion. This is an acceptable strategy if being interested in the product is your primary objective, not necessarily business success. But if your #1 goal is to build a profitable drop shipping site, you’ll want to consider setting your personal passions aside when doing market research, or at least making sure they meet with the criteria discussed below.
What is Shopify
Our Ultimate Free 7-Day Dropshipping Course!
Ready to kick some Ecom butt? Register for our 7-Day Course and learn from beginning to end how you can dominate Dropshipping