What is Dropshipping?

/ eCommerce 101

Dropshipping is a partnership between an Online Store and a Physical Store. Similar to a Supplier and Seller relationship. The Online Store will offer the products of the Physical Store in their own Online Shops even without the physical inventory; if they receive an order for that product, then the person managing the Online Store will arrange the pick-up and delivery to the customer. The Physical Store will still get the Sale.

How does it work?

  • If you’re the Online Store, you can partner with the owner of a Physical Store and talk about percentage on profit share per order.
  • If you’re the Physical Store, it’s going to be a win-win partnership as you will not handover any physical inventory without a sure sale. The Physical Store can dictate the payment terms; it can be Cash On Delivery, Bank Transfer, Gcash, or any Payment Gateway you can think of.

Benefits of Dropshipping for Suppliers:

  • The Physical Store can have a wider reach of customers through various Online Platforms. The wider-the-reach-the-better for searchability that can lead to a sale. The more connected a Physical Store is to various Online Platforms then it can generate repeat customers, plus trust in the Brand is built as Integration is Key.
  • The possibilities are endless in an Online Store. An Online Store is open 24/7, and receives orders from any part of the world at any given time.
  • You will be able to help generate income for people who would like to sell your products.

Benefits of Dropshipping for Online Stores

  • “No Capital Needed” as you will only pay for the product per order.
  • No need for a Physical Inventory that you will have to store and keep.
  • Earn from Home as you can do this in the comforts of your own home or even while traveling, especially if you found a Physical Store who will fulfill the orders for your Online Store.

There are many more benefits having a Dropshipping partner for your business. Find partnerships that will suit your business goals and don’t be scared to ask questions.

Remember, Integration is Key.

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