Dropshipping is an eCommerce business model in which retailers sell products to customers without managing the inventory. They partner up with suppliers who handle the inventory, packaging, and shipping of the products directly to the customers.
The drop shipper does not have to bear the risk of unsold inventory or managing the logistics or shipment process. But since the drop shipper act as a broker between the supplier and the customer, the profit margin will be comparatively lower than traditional eCommerce business.
Here are some advantages and disadvantages of Dropshipping business.
Advantages:
- Low initial investment
- Reduced financial risk
- Easier to manage
- Flexibility in choosing products
Disadvantages:
- Low profit margin
- Less control over product quality and shipment
To learn more about starting a WooCommerce Dropshipping business, read our article here: WooCommerce Dropshipping: Why you should use DSers?