What is Dropshipping and how it works?


We all know that online business has become an effective way to make money these days; of course, you have to conduct it skillfully and methodically. But, you have to do a lot of hard work and spend your energy as well to make your business successful and sustain. And the workload becomes unbearable if you are an e-commerce entrepreneur. Besides investing your money and spending time, managing the inventory is a daunting task to accomplish. There’s no need to worry about; there are ways to make things a little bit more manageable. If you create an e-commerce site and run it on a dropshipping business model, then you will never need to manage your inventory.

What is Dropshipping?

The idea of dropshipping is not new to the world of online business; it has been floating around for quite some time holding the hands of e-commerce triumphant like Amazon, Sears, etc. It is the most flexible business model or a part of supply chain management, which enables the e-commerce entrepreneurs or retailers to sell products online without stocking the items themselves. Whenever a customer places an order for a product, the store owner or retailer, simply contact the supplier. It will be then the supplier’s duty to get the product from his warehouse, pack it and deliver it to the customer’s door.

If you are new to this e-commerce business, then the dropshipping method would be the best option for you; neither you need a large up-front investment nor manage your inventory. In fact, you will be in the role of a middleman, passing the orders to a dropshipping company like Shopify, and let them do the rest of the work. You may be wondering, what would be your profit? Your share of the profit lies in the difference between what you charge the buyers on your website and what the drop shipping company charges you.

How Dropshipping works

  • A visitor arrives at your online shop and buys a T.V.
  • You don’t have any inventory to ship the T.V. to your customer.
  • You get the order and pass it, either manually or automatically, to a dropshipping company.
  • The drop shipping company will then take the load of packaging the order and the shipment.
  • It will send the T.V. to the customer on your behalf, on time.


If you are looking for the best and easiest way to set up your online business, then start selling products on e-commerce websites like Shopify. It is, in fact, one of the reputable e-commerce platforms, helping out the entrepreneurs to establish their own online store, with a little up-front investment. Shopify holds one of the best strategies for dropshipping. At Shopify, you will never feel the burden of excess inventory, as you will be allowed to order the exact amount of products that can fulfill the demand of your consumers.

Instead of paying for a warehouse, and manage your inventory, just jump on the wagon of dropshipping and start up your online store with having a low fund.


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