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How does the Dropshipping Business Work and its Definition and Benefits

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icoulee.com: What is the meaning and way of working of a business system or dropshipping business, sometimes there are still many people who do not fully understand it so they think this is still the same as a reseller, who is actually very different.

Maybe you often read or hear the term dropship in several reviews that discuss online stores.

Currently, in the era of the internet, which has grown rapidly, the dropshipping system is one of the types of business options without capital which is quite profitable and has become a trend in the latest online business in 2020.


Understanding dropship with all the benefits for sellers and suppliers

With the dropshipping system business, business actors can develop a network or market reach that is much wider than conventional selling.

Dropshipping business people can have a product to sell without you having to spend capital to provide the product.

Still don't understand and getting confused? Take a look at the schematic image above which explains how the dropshipping system works.


Understanding Dropship

The dropship scheme above is actually enough to describe how dropshipping is and how does dropship work.

The definition of dropshipping is a marketing technique for a product in which the seller does not own or keep stock of goods.

If the seller gets an order, he will forward the order to the distributor / supplier.

Then the supplier will send the item using the name of the dropshiper so that in this way it is as if the dropshiper has a private store with complete stock of goods.


Dropshipping benefits

It has been mentioned that dropshipping is different from resellers who must have capital to buy stock and then sell it back, so here are some of the advantages of dropshipping business:

  • As a seller, you don't need to stock a lot of goods, and you don't need to be afraid that the product doesn't sell well, you are even free and can mix goods from different suppliers.
  • You can determine the selling price yourself, because the buyer will transfer the money to you, and then you pay the supplier according to the agreement.
  • It does not require a location (lapak) to rent a shop / warehouse so that the cost is very minimal, even without capital.
  • You are not busy or bothered to package and send goods because it is the responsibility of the supplier.
  • Your name / your shop will be embedded as the name of the sender of the goods so that buyers do not know the original supplier.


The advantage for suppliers to implement a dropshipping system

  • A wider market reach because the supplier will be helped by a network system that can be anywhere.
  • Products will sell faster because the dropship will aggressively make direct promotions to consumers.


Conclusion

For those of you who are new to this type of business and want to enter the world of dropshipping, you are advised to be careful because not all suppliers are honest and not all buyers are honest.

It's better to find a supplier who really can be trusted, and make sure the supplier sends the ordered goods to the buyer in a professional manner.

You must be able to forward the order after receiving money from the buyer, as well as ensuring that the supplier keeps the order by sending goods according to consumer demand.

Dropshipping business is one of the easiest online businesses even for beginners and of course you can run it even though you don't have a blog or website by means of promotion through social media.

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