Drop shipping is a supply chain management technique to help retailers (you) minimize stocks. When a product is sold, the retailer passes the customers' order information to the dropshipper (Buyeasy) who then packages and ships the product directly to the customers. This process minimizes the risk of retailer because you do not need to buy the product until it has sold. Hence, retailer can expand their product range with zero cost. The retailers make their profit on the difference between the wholesale and online retail price.
How can drop shipping benefit you?
Drop shipping is not a 'get-rich-quick' scheme. As with any business, it takes dedication and hard work to be successful. However, there are distinct benefits to using drop shipping in your online retail business:
- You can become a retailer without needing to invest large amounts of money.
- You can start a business with very little risk.
- You don't have to carry inventory or pay for inventory upfront—if the product doesn't sell, you never have to buy it.
- You don't have to buy packaging materials and shipping labels, nor will you need a shipping account.
- You purchase products at wholesale pricing and set your own retail prices.