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:
- A visitor arrives at your online store, browses products, selects the one, places the order and makes a payment for a product at a retail price.
- You receive the order and either manually or automatically you forward the order to the product supplier and make a payment for the product at the wholesale price.
- Product supplier picks up the order, processes it, packs the product and ships it to the customer on your behalf.