DropShipping 101

The internet has revolutionized not only the way we gather our information and communicate, but it has also changed the way in which we go about our daily lives. Traditionally, whenever we require anything for our daily needs we would go down to the local store or supermarket. If we needed clothing or electrical items we would take a trip to the local mall or gadget store. The internet has changed all of that. According to recent surveys, 95% of Americans used the internet at least once in 2016 to make a purchase and just over 50% admitted to using the internet regularly to buy products. this is great for the e-commerce industry, but have you ever thought about how your order gets from A to B?

One platform that many e-traders use is a platform called Dropshipping 101 and in brief this is what it is and how businesses use the platform to get there products from the trader to your doorstep. The first thing to point out about traders using this platform is that the trader does not actually own or even hold the product you are buying. What they effectively are is a go between acting as a middle man between you –the buyer- and somebody selling the product.

The way it works is like this. Somebody will come along and set up an e-commerce website retailing various products depending on what they want to specialize in. You, as the customer, will then go to that sellers website and if there is something there you want you place your order. That order is then forwarded to the sellers dropshipping partner, who is usually a wholesale retailer, who then packages and posts you your order. You pay the middle man directly through his website and he will then relay payment to his dropshipping partner, taking his profit at retail price whilst paying his partner wholesale. A simple but quite clever way of making money without actually having to make any large investments, or carry large amounts of stock.

Are there any disadvantages to you the customer? Well not really. As long as the website is well trusted and commented on favorably then there really should not be any problems and reputable traders will cover any damage or loss with insurance.

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