What is Drop Shipping & How It Works?

Drop shipping is a form of eCommerce online store where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product (at retail price), it purchases the item from a third party (at wholesale price) and a third party ships the product directly to the customer under the store’s trademark.

Drop shipping business works like any other online shop, but it is much more convenient for retailers as it saves you money you’d need to invest in keeping the inventory as well as time and efforts to ship the goods and deal with customer service.

Here is an overview of how the drop shipping transaction looks like:

With the drop shipping model, you don’t have to purchase a product unless you already made the sale and have been paid by the customer. You don’t have up-front inventory investments or costs of managing a warehouse, which enables you to start your eCommerce business with much less money.

Since you do not have to pre-purchase the products you sell on your dropship website, you can offer a wide selection of products to your customers. Listing many products on your website does not cause any additional costs to you, as long as the supplier has it in stock.

Since you don’t need to invest a lot of money in inventory and warehouse, the risk involved in starting drop shipping online store is dramatically reduced. In case your business does not go well, you will not be stuck with thousands of products in inventory that you have to sell at a loss.

Because you don’t need to run a warehouse and to physically manage your products, you are able to run a drop shipping business with your lap top from any location.

With a traditional eCommerce business, more sales mean more work for you to manage orders and complete purchases. Running a drop shipping business, most of the work to process additional orders will be done by product suppliers so you can expand your business and scale easily.

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We at BE BIGGY, the world’s most preferred partner for delivering best dropshipping stores and web stores of legitimate dropship companies, let you shorten the learning curve that is generally associated with the purchase of a web store and then putting it on the internet map to help you sell products online without inventory. No more hassles chasing down the inefficient freelancers who gave lame excuses and delay the launch of web stores for the most horrendous reasons that the human ears and mind can even justify. You buy dropshipping stores from us using safe and secure payment options and you get a professional, fully-automated, and live websites for sale that make money within just 24 hours of your order. The best thing is that your web store would come preloaded with top-rated, niche-specific, trending, and popular dropshipping products from the best and most trusted names in the world of Shopify dropshipping supplies. This helps you quickly maximize your web store’s earning potential. It’s that easy!

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You must first understand the drop shipping definition and the concept of dropshipping with complete clarity to fully reap the optimum advantages of dropshipping.

In a traditional retail model, the store keeps a stock of the inventory that it intends to sell. This means the retailer purchases items from a supplier and holds that inventory until a customer places an order and pay for it. This form of selling has its advantages as the store can buy multiple items or specific items in bulk to get discounts from the supplier. However, it also requires the retailer to acquire more physical space to store in a warehouse and make regular payments in the context of lighting, manpower, etc. and even make huge investment in the products upfront that is later covered by the purchase cost by products.

In a dropshipping retail model, the retailer instead showcases products of suppliers and takes orders from customers. Thereafter, details of the order are forwarded to the drop shipping supplier after a customer places an order and pays for it. The retailer makes a wholesale and agreed payment to the supplier and keeps the difference between the price paid by the customer to him and the price paid to the supplier. The supplier is responsible for packaging and shipping of the order and this reduces storage requirements for the retailers besides requiring less upfront capital.

Here is an example of a normal retail business model without a dropshipper:

1. You routinely make orders for products from a supplier with a predefined purpose of maintaining the inventory on hand. This is usually done in Minimum Order Quantities (MOQs) for getting wholesale prices.
2. You pay for warehousing and store products until a customer places an order for them.
3. You are completely responsible for processing each and every order. Moreover, you have to pack and ship the products to the customers yourself.

Here is an example of a retail business model with a dropshipper:

1. A customer selects some products and places an order with you.
2. Information about the order is passed on to the dropshipper.
3. The dropshipper charges a wholesale and agreed price for the product sold on receipt of an order from you.
4. The dropshipper then directly pack and ship the goods on your behalf to the customer.

In other words, dropshipping is the process of showcasing products of suppliers on your web store and selling them without actually handling dropshipping order fulfillment and shipping. One of the most amazing components of dropshipping is that you, as a retailer, don’t have to ever pay for the product until a payment for it has been made to you by the customer. This distinctive advantage of dropshipping makes it ideal for people who don’t want to take any kind of risk to buy products that would not sell. Not only this, the low barrier to entry facilitated by dropshipping allows beginners to the world of dropshipping and even owners of existing businesses to pick a specific niche and run their dropshipping-based eCommerce store at their own terms and conditions.

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Whether the dropshipping model is the right fit for you or not depends on where your skills lie and what your goals are. For this, let us have a close look at the pros and cons of dropshipping.

Dropshipping frees your business from the time, monetary, and labor costs of manufacturing, warehousing, packaging, and shipping products yourself.

One of the most noteworthy advantages of dropshipping is that you can offer a wide and rich range of products on your dropshipping web store that would have been otherwise impossible or too costly to pack and ship because of the limitations of your eCommerce dropshipping store (such as perishable or extremely large products). With dropshipping, you can be located anywhere in the world and the products sold by you will still reach your customers!

Another advantage of dropshipping is that you get enough to promote your web store on a wide range of marketing channels like Facebook, Twitter, or Instagram. You are relieved from the complicated tasks of packaging, shipping, and order fulfillment (that are huge logistical headaches) as all these tasks are handled entirely by the dropshipper.

In short, dropshipping allows you to outsource packaging, shipping, and order fulfillment to the dropshipper. The best part is that since dropshippers are usually large businesses that deal with many orders every day, they have access to negotiated shipping rates that are comparatively lower than the ones that your small or medium business can possibly get on its own. Moreover, dropshipping can also be useful to minimize losses from damaged products as product shipments follow a more direct and precise route from the warehouse to the customer.

In addition to eliminating the requirement for the storage of physical inventory, dropshipping ensures that your web store never has to worry about shortages or overstock on your end. It also ensures that your eCommerce dropshipping web store is not susceptible to the possible risk of shifting trends that may result in specific products to suddenly fall out or in favor. Furthermore, most dropshippers offer the facility to expand your current selection to new products, from extremely popular to niche items and classic sellers. Dropshipping organically promotes scalability between the flexibility to select the location of your web store and the ability to expand.

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The biggest advantage of dropshipping is that you, as the retailer, only purchase the product when it is already purchased by the customer. This means that you get the wonderful opportunity to invest the “saved” resources (from wholesale pricing and no warehousing expenses) on other critical aspects of running your web store such as buying more paid online advertising or using Pay-per-click marketing.

This also eliminates the risk of purchasing products that may or may not sell. By doing this, dropshipping brings down the product upfront costs to zero. All in all, dropshipping is an amazing business opportunity for businesses that want to stick to a moderate and lean cost structure or want to sell products online without inventory.

Secondly, dropshipping allows you to test out new ideas or products to increase your chances of success with running a profitable eCommerce store. If you have been wondering which style of footwear or baseball bats would went on to become bestsellers on your store, you can trust dropshipping to help you perform real-time and precise marketing testing in the most affordable and easiest ways and all this without having to make huge investments in testing the market pre-launch. This gives you a great option to switch your product selection and marketing strategies until you manage to hit on the magical formula that works for your dropshipping business.

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Why Shopify Dropshipping Is Best Option For You?

Shopify is the unarguably one of the best and most popular eCommerce platforms out there. BE BIGGY lets you buy a ready-to-go-live Shopify dropshipping store with just a few clicks and the fully-automated and live store is all yours within the next 24 hours.

Powered by seamless and state-of-the-art drop shipping capabilities and SEO-ready site structure, these best dropshipping stores are enriched with automatic fraud analysis so that your web store is always protected against malicious entities and virus and phishing attacks. The embedded Oberlo integration facilitated by us through Shopify dropshipping web stores built by us lets you add a wide range of latest, niche-specific, and top-rated products from some of the very best dropshipping suppliers in the market.

The editable HTML and CSS functionalities of these web stores allow you to make as many changes as required by you to keep operating your Shopify eCommerce store in a profitable and smooth way. Not only this, you can keep a close track of your store’s activities and profitability by using website statistics and product reports. This also helps you identify the most profitable products of your store and the ones that are not performing as per your expectations. You can use this data to improve your marketing strategies and remove the under-par products from the web store and instead replace them with better products to join league of the most profitable dropshipping companies.

How WooCommerce Helps You Sell Products Online?

WooCommerce, an open-source eCommerce plugin for WordPress, is another great way to sell products online without inventory. You can perform a wide range of functions using the WooCommerce model of dropshipping from selling on Facebook to editing aesthetics and from understanding user behavior to buying patterns & preferences — you can do everything with WooCommerce.

By choosing WooCommerce to sell products online without inventory, you get access to unlimited number of products and product categories and literally hundreds of available plugins (extensions). Not only this, you can easily and quickly sell physical as well as digital products along with a free Facebook ad and Facebook stores extension.

How To Start Successful AliExpress Dropshipping Business?

BE BIGGY can help you quickly get in the WooCommerce world by offering you ready-to-go-live and niche-specific eCommerce web stores. You don’t have to be an expert with coding, customization, layout, product selection, and identifying the best WooCommerce dropshipping suppliers as we will take care of everything. Not only this, your purchase will be entitled to lifetime after-sales support that means your web store will always run smoothly and efficiently. Grab the innumerable benefits of WooCommerce dropshipping through leading WooCommerce dropshipping sales channels for your WooCommerce dropshipping site now!

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