Dropshipping. Anyone who has ever looked into starting an online business has probably come across this term. However, not everyone actually understands how it works. To someone who is new to the online business world and are looking to break into the eCommerce industry, the dropshipping process can seem a little daunting.
If you’re looking for a definitive guide to dropshipping in the Philippines, you’re in the right place! This article covers everything you need to know – from its meaning, how this business model works, its benefits, and how you can start a successful dropshipping business. Let’s get started!
Dropshipping is a type of retail fulfillment method where a company doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping business model, it buys the items from a third party and has it shipped directly to the customer – the seller doesn’t have to handle the product directly.
The biggest difference between the standard retail model and dropshipping is that the seller doesn’t own or stock inventory. Instead, the seller buys inventory as necessary from a third party – usually a manufacturer or wholesaler – to fulfill orders.
Here’s a quick overview of how dropshipping works:
This kind of business model is very attractive as it eliminates the need for the store owner to have a brick-and-mortar business location such as a warehouse or office space. Instead, all they need is a computer/laptop and an internet connection.
As a business model, dropshipping offers numerous benefits.
Want to start a dropshipping business in the Philippines? ( Contact us if you are interested to start an online dropshipping reseller business. )
Starting a dropshipping business can be cheaper, easier, and more profitable than traditional retail models. That said, this business model comes with its pros and cons, and just like any other entrepreneurial endeavor, it requires a certain degree of effort, passion, and commitment to make it work. It’s not just about creating the business – it’s also about following through and learning how to run it on a day-to-day business.
Contact us if you are interested to start an online dropshipping reseller business.