Written by Manuel Barrios Carrasco
Dropshipping is an e-commerce model where the online store does not have stock of the products offered. At the moment a purchase is made, the online store manager issues a request to the product supplier to ship the item to the end customer.
This business model is a common entry into e-commerce for entrepreneurs because of all the advantages it offers.
With a dropshipping online store you will not have to purchase stock. This way you can reduce your initial investment. You also avoid managing all the product logistics. The supplier of the item is responsible for placing and shipping the orders. This issue in a traditional online store can be very time consuming.
The main disadvantages of dropshipping are high competition and low sales margin. The dropshipping supplier offers its products to a multitude of stores that compete with each other to sell the products, this results in a reduction of margins to be competitive and a very distributed target audience.
The success of a dropshipping online store will lie in finding an under-exploited supplier and in doing a great job in SEO that allows to bring to the store large amounts of web traffic at a low cost.
If you want to know more about dropshipping you can read the following article: Dropshipping for e-commerces
