Dropshipping Model and Business
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In this era of global economic digitization, one of the most trending worldwide business models is dropshipping. Dropshipping is a system of chain supply management where the order is placed by the consumer but the retailer never stocks goods. The retailer transfers the order either to the manufacturer or a wholesaler. Now the wholesaler is shipping the product directly to the consumer. In this process, it is demanding less time and investment in order to be executed. So technically, it shapes into a good startup method in a lower amount of investment and it is effectively making quick liquid money. In this system, the consumers receive a direct service; it saves their time. Dropshipping is amazingly fast in delivering products to the consumer. Nowadays nobody wants to wait for an ordered product, be it a smartphone or a laptop. Dropshipping is providing consumers one-day delivery and in most cases, it is coming with the option of cash on delivery. So the retailer has to pay nothing for a product, but keep the orders coming its way.
In this business model, mostly the retailer is making the profit on the difference value of retailer price and wholesale price. In another system, the wholesaler shares an agreed percentage of the profit to the retailer as a sales commission. This is how the dropshipping model works. Most of the e-commerce platforms of today's global web market is using this method as their trump card and the economy is getting highly affected by this simple but gracious, flowing business model and it is looking like the next big thing in the scenario of world economics and business. As the global economy of these platforms are expanding every day and people around the world are getting accustomed to this method of shopping, it is a great time frame to be in this business model and work on it with proper business and marketing strategies. This economy is ready to thrive in a short period of time.
