Dropshipping

Dropshipping – logistics model used in online sales, which is based on transferring the delivery process to the supplier of the goods themselves. The task of an online store is to collect orders and transfer them to a manufacturer, wholesaler or other supplier. Dropshipping solutions work well for small e-stores, sales on auction portals, stores that are just starting out and those that want to expand their offerings. The pros of dropshipping include the ability to cut costs and low financial risk, no costs related to stocking and warehousing, and no costs related to having to hire employees to handle the warehouse and ship orders. Dropshipping also guarantees a certain profit, since we pay for the goods only when we sell them.  This logistics model also has some cons, which include a lack of access to suppliers’ current inventories, which can result in extended lead times, high competition, or a lack of control over the order fulfillment process and the quality of goods shipped.