What is Drop Shipping — an Overview of Tthe Concept

Want to know what is Drop Shipping, how to find a supplier for your recently created online store, and how Drop Shipping works, that is, how cooperation in the field of sales takes place? If so, then here you'll learn the definition of Drop Shipping by mere words along with a detailed scheme on getting benefits from this concept.

1. What is Drop Shipping – the definition and way of working

Simply put, the word "Drop sShipping" means "Direct dDelivery". The main point of this concept lies in the direct delivery of goods from the producer to the consumer.

Drop ship business is a sale scheme where the merchandise is sent directly from the manufacturer to the customer. In other words, this is mediation in its purest form.

The organizer of this business acts as a conduit: he looks for the demand and implements the proposal. In other words, the mediator finds the client, the product and provides them a meeting.

The Drop sShipping working principle in plain language

Let's say, you've created a site, for example in the format of an online store. When you're working with Drop sShipping, you don't need to buy any products, as you're just a mediator, and your store is essentially an electronic showcase! All your actions boil down to advertising the supplier's goods on your site till the moment of the purchase of these products. After that, all you have to do is to accept payment from the customer and transfer a certain amount of money to the supplier so he can send the ordered goods to the final buyer.

The main advantage of this scheme is in the absence of costs for the purchase of goods on the part of the entrepreneur. He doesn't need a seed capital for the acquisition of the initial production batch; he'll pay for it out of his client's money, and the difference between the purchase and the total price goes right into his pocket.

Theoretically, it sounds simple, but when it comes to practice, the scheme needs to be worked through.

Do you know what is the main obstacle when opening an online store with the standard approach? It goes without saying that, for beginners, the main hindrance lies in the absence of seed capital and lack of knowledge of the specifics of eCommerce business. Of course, Drop sShipping can't solve all these problems, but it eliminates the need for initial investment thereby allowing to start a business online with virtually zero start-up capital.



Drop sShipping suppliers working in this field, of course, don't work for nothing and aren't big charity people. Nevertheless, an optimized Drop sShipping chain allows businesses to make direct deliveries of goods to customers, bypassing the stage of procurement.

Although Drop sShipping has appeared relatively recently, today there are hundreds of resources (drop shipping wholesalers from China or other countries) on the Internet that anyone can take benefit from.

Of course, you may ask yourselves what prevents ordinary people from buying goods from these suppliers. Nothing, of course. However, not all buyers have the opportunity and time to find these Chinese dropship companies and interact with them. And why would they do that, if the Internet reseller store takes over this function? There they can shop comfortably, while communicating with the seller(you) in the mother tongue.

It makes no difference to buyers where the ordered goods came from. The most important aspect for them is to get good quality products. Hence, if a customer makes an order with you, you then make the needed order with the supplier, and after the latter gets the required payment, he sends the item ordered by you for your client to the end buyer. The client doesn't even realize that he has purchasesd goods from someone else.