dropshipping

Dropshipping is a logistics model used for online sales involving the transfer of the process of shipping goods to the supplier. The important point here is that the role of the online shop in this logistics model is reduced to collecting orders and sending them to the supplier, who carries out the process of shipping the goods to the customer. This is similar to all retail, where the retailer gains a financial advantage from the difference between wholesale and retail prices. Dropshipping is a qualitatively good solution for smaller shops that tend to sell their product range in smaller quantities and don't want to freeze money on bulk stock orders from suppliers or increase lead times by stocking up. Instead of a large shipment to the shop, the supplier ships the goods themselves, which is done directly to the customer. Dropshipping is also often practised for bulky goods. Two important benefits of dropshipping are that there is no top-down need to allocate money in the goods and there is a regular cash flow. Other benefits include advantages such as getting rid of warehousing problems, reducing the cost of protecting the goods and transporting them, speed of delivery or, finally, the ability to focus on other aspects of the business. The negative feature of dropshipping is that the shop loses the certainty that each order will definitely be delivered within the time guaranteed by the shop. Another example of a disadvantage of dropshipping is the limited opportunity for branding or parcel labelling and limited customer contact. It is also possible for the supplier to take over the customer database and reach them with an offer without going through the shop. Read more!