Understanding Dropshipping

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Every businessman wants to reduce their overhead cost and desperately tries different measures for it. However, most of them forget to try dropshipping. What is dropshipping? It is a popular business model utilized by e-commerce retailers who don’t want to keep inventory on hand.

Instead, when customers place orders through their online stores, the retailers pass those orders on to the suppliers who handle the shipping process.

It’s a game-changer for businessmen who don’t want the hassle of managing inventory or renting a storefront. Watch the video and learn everything you need to know about dropshipping, from what dropshipping is to who can use dropshipping.

Things explained in the video
-What is Dropshipping?
-Who can use Dropshipping?
-What are the advantages of Dropshipping?
-What are the challenges of Dropshipping?
-What are the best practices of Dropshipping?

Here’s a look at how dropshipping works:

1) Agreement: The retailer (dropship seller) establishes an agreement with a dropshipper. This agreement outlines the terms, conditions, and products available for dropshipping.

2) Placing an Order: A customer visits a business’s online store and places an order for a product. The customer completes the payment and provides shipping information.

3) Order Confirmation: The businessman receives the customer’s order and generates an order confirmation, which is sent to the customer. This confirmation typically includes details such as the order number, product details, and estimated delivery time.

4) Order Forwarding: The businessman then forwards the order details to the dropshipper. This includes the customer’s shipping address, product information, and any specific instructions.

5) Product Shipment: Upon receiving the order from the retailer, the dropshipper prepares the product for shipment. They handle tasks such as packaging, labeling, and arranging for the shipping carrier to collect the package.

6) Delivery to Customer: The shipping carrier transports the package to the customer’s address. The customer receives the product within the estimated delivery timeframe.


00:00:00 Introduction
00:00:48 What is dropshipping
00:01:36 Who can use dropshipping
00:02:27 What are the advantages of dropshipping
00:03:30 What are the disadvantages of dropshipping
00:04:41 What are the best practices for dropshipping

Additional Resources and Tutorials

You can check out our detailed blog on what is dropshipping here-

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