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The Beginner’s Guide to Drop Shipping

Joe Schwartz

Joe Schwartz

eCommerce Editor

Drop shipping is an increasingly popular way of selling products online, in a convenient, low-cost, practical way. Here’s a quick guide on the basics of drop shipping - what it is, how it works, the benefits, and how you can easily get started today.

What is drop shipping?

Drop shipping refers to the process where suppliers ship customers’ orders directly without keeping or maintaining any physical goods in stock. Instead, drop shipping sites rely on third-party suppliers to ship the product directly to the buyer. These types of sites often work with large wholesalers like eBay, Amazon or AliExpress.

How does drop shipping work?

Drop shipping is different from a standard purchasing transaction. The way it works is that a buyer places an order for a product listed on an online drop shipping store and sends payment through the site. Then, the owner of the drop shipping store passes on the order details to the wholesaler who keeps the products in stock at their warehouse. The supplier packages and ships the product directly to the customer, even though the whole transaction took place on the drop shipping site.

How to create a drop shipping store

Got a niche in mind? Or a particular set of products that you want to sell? The first step is to find a trustworthy eCommerce store builder that allows you to integrate with drop shipping apps. Be sure to compare eCommerce builders in terms of design flexibility, ease of use, payment options, and price. Once you’ve built your drop shipping eCommerce site, you need to attract potential customers! Utilize simple marketing options like Google ad credits, email marketing or search engine optimization to help reach a wider audience. Utilising social media and supporting mobile devices are other ways of maximizing your reach and increasing sales.

Benefits of drop shipping

There are many benefits of drop shipping, making it an attractive approach to getting started with an online store. The primary benefit is that a drop shipping store significantly minimizes risk since you don’t need any upfront payments to purchase or store stock (that you might not even successfully sell). It also eliminates the hassle of stocking and storing inventory, and you also don’t need the overhead of managing sales and shipping yourself.