What is Drop Shipping
Drop Shipping is a method in which orders from the customers along with the shipment details are directly transferred to the seller. The seller can either be a wholesaler, retailer, or manufacturer. The seller then ships the ordered stock to the relevant customer directly.
If you see the below video you will Know Details What is Dropshipping and How to Create a Drop Shipping Business in 2020
There are many emerging companies working by drop shipping since 2006. The major ones are based primarily in the USA. They provide these services to individuals as well as companies. It is due to enhanced e-commerce and the internet. The suppliers based in China can serve within the country due to ease of trade barriers. Ali Express is used by many of them. Nearly 33% of retailers are using it as a method to fulfill their orders.
How can products be reviewed?
For this, the retailer can either display the stock at a store or keep an online catalog for the customers at the time of purchase. The catalog helps to review the stock items.
What Is Blind Shipping
To keep the source of the product unknown, the retailers could take measures. Blind shipping means to ship a product without any return address. It can also be done by using “private label” which is a customized return address to the retailer and not to the wholesaler. Details about the product, such as company name, contact information can be added on a packing slip. Retailers can earn their profit when there is a difference in the retail and wholesale price on an agreed percentage.
Dropshipping is also used by the auction sites to distribute the products. It can occur when a huge order for any product is received by a small retailer. In this case, the retailer has to arrange the demanded quantity of products to be sent to the customer.
The seller marks the product as new and it is shipped to the customer directly from the manufacturer or the wholesaler. Profit can be earned excluding the shipping fee.
eCommerce and Drop Shipping
Dropshipping retailers are being served by e-commerce platforms to sell online. Using Shopify Drop shipping is one of the platforms making it easier for the sellers and customers. In 2018, Shopify declared more than 800,000 businesses being run in 175 countries.
Problems With Drop Shipping
Everything has a negative side, dropshipping has too. There are a lot of scammers. The victim will be sent a list of individuals acting as a middleman with no item of their own. The orders can be placed on the list. These middlemen leave little profit for the retailers
A published article reports that some drop shippers display the wrong product to the customers. Customers either receive the items that were not advertised or get nothing at all. Customers after receiving the product get to realize that they have paid more. So they want to return the item and order directly from the manufacturer. It can result in losses to the retailers.