What is Drop Shipping | What County

What is Drop Shipping

Dropshipping has many advantages over traditional e-commerce delivery methods. It is particularly suitable for start-ups, as products are only purchased from the supplier after ordering and thus the business is well scalable.

Dropshipping is a type of online trading in which retailers offer products in their online shop without even having them in stock themselves.

What is Drop Shipping
What is Drop Shipping
Drop Shipping
Drop Shipping

The shop operators usually focus on the branding of the products and marketing measures.

In the case of drop shipping, the actual shipment is usually carried out directly via the manufacturer or a wholesaler.

The advantage: You save on storage and shipping costs.

Dropshipping is an e-commerce business model in which the online retailer sells goods that he himself does not have in stock. After the customer has made a purchase in the online shop, the retailer orders the goods from a wholesaler or manufacturer, who then sends them directly to the customer. The dropshipper therefore has no physical contact with the product and does not maintain a warehouse. Dropshipping is basically a logistics service of the wholesaler or manufacturer, but in the best case it does not appear at all, since the logo and the return address of the online shop are written on the delivered goods.

In other words, the customer has the impression that the goods were shipped by the online shop itself. As a result, he sends the goods back directly to the dropshipper in case of complaints. In the German-speaking world, dropshipping is also referred to as drop shipping, in which manufacturers, wholesalers and resellers or retailers are involved. Here, the manufacturer sends the goods directly to the retailer, bypassing the wholesale trade. The wholesaler has only a commercial function, in that order, invoice and payment channels run through him. The dropshipping model has many advantages, especially for entrepreneurs who are just starting out with e-commerce. Whichever model is chosen, communication and trust with suppliers must be right. Because the supplier is responsible for the product quality and shipping, and much more. The data exchange between the suppliers and their own company, for example of inventory quantities, price changes, new products, delivery times, delivery tracking, etc., must be as perfect as possible. In some cases, there are already automated solutions for data exchange via a pre-programmed app (e.g. Oberlo) or you can program your own solution via Application Programming Interface (API). In addition, the suppliers must of course also ensure a functioning, trustworthy logistics.

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