What Is Dropshipping? We Break It Down For You!

As the world becomes more and more digitized, the e-commerce sector has taken over as the primary place to shop for products and services.

One of the most viable e-commerce options out there is dropshipping. It’s a business that requires very little investment to start, and you don't need to have a physical storefront!

Click here to get a dropship site built for you in less than 3 days. Or, if you'd just like to learn more first, be sure to check out our completely FREE webinar on how to build a successful dropship business! (Spoiler alert: In the webinar, we walk you through our secret dropship model that destroys AliExpress dropshipping in 2020!)  

So what is dropshipping? How does dropshipping work? What is the dropshipping business model? Let's get into it! 

What Is Dropshipping And How Does Dropshipping Work?

Dropshipping is a type of order fulfillment where you, as a store, use third-party suppliers to fulfill all customer orders. This means you never have to pre-purchase or stock inventory! 

So how does dropshipping work? The third-party supplier sends the products directly to your customer with discrete packaging, meaning your customers won’t know that the product didn’t directly come from you. Around 33% of the orders fulfilled online come from dropshippers.

Dropshipping is a great business model for e-commerce because you don't have to stock products and you don't have a brick-and-mortar store. All of that drastically reduces the amount of money you have to spend to have your own business!

Dropshipping Benefits

Let's dive into the benefits of dropshipping and find out what makes it such a good option for e-commerce. 

List Of Dropshipping Benefits

Here are some of the benefits of dropshipping:

1. Dropshipping is an accessible business with low barriers to entry. You can get started without too much investment and you don’t need any prior experience if you want to set up a dropshipping business. Just learning a few of the basics will help you get started. One reason people flock to the dropshipping business option is that it requires very little from you as a seller. You don't have to worry about stocking products, checking inventory or shipping infrastructure. This makes it so much easier to maintain your business! Once you get going, the business runs itself. It's fully automated.
2. Dropshipping businesses are easy to grow and scale. Even when you scale up, the day-to-day operation remains the same, which lets you focus on growth solutions like marketing and sales. 
3. Dropshipping doesn't require equipment or a lot of investment. You can start your business from your laptop!
4. Dropshipping is known for its versatility and flexibility. You set your own schedule and you can work from anywhere! That's one of the absolute best things about dropshipping; you can work from anywhere in the world! You're free to travel, spend more time with your family or working on other projects you haven't had time for!  It makes for one of the most flexible career options out there.
5. Easy management is one reason people go into dropshipping. Once the system is set up and running, it requires little commitment and time from you. 

Building Your Dropshipping Business

Now that you know how dropshipping works, you're ready to get started! If you want some help, be sure to check out our completely FREE webinar on how to build a successful dropship business! We'll walk you through the process step-by-step. Or, you can have our expert team at DropshipUSA build a fully automated USA based dropship website for you in less than three days!