Running an online shop involves many different responsibilities - not only sales and advertising and marketing activities. Proper storage of goods, preparation of orders and efficient dispatching of products are basic tasks, which, however, can cause additional problems. But what if it were possible to dispense with them? Dropshipping is the ideal solution.
Dropshipping model - what does it mean?
There is a lot of talk these days that having your own online shop does not have to be a complicated undertaking. Setting up a sales platform has become extremely easy, thanks to modern software packages, of which there is no shortage on the market. However, once the business is up and running, the logistical hassle begins and processing orders takes up a lot of time. At the same time, we need to develop our business and attract new customers, because competition in the sector e-commerce growing. 
Fortunately, there are solutions that make it significantly easier to run an online shop and, in addition, do not involve any additional financial input. One of these is dropshipping. How does it work? The principle of dropshipping is simple: the buyer receives the goods directly from the wholesaler, which means that we do not have to maintain a warehouse and prepare orders for shipment. Our task is limited solely to passing these orders on to the supplier so that he can fulfil them efficiently. In the dropshipping model, we therefore focus on sales and the appropriate promotion of our shop. It is worth mentioning that not all suppliers offer dropshipping service - so you should search for a contractor in the database of wholesalers offering this service and possibly ask a chosen supplier about this option if you have not found relevant information in the database. The contract with the wholesaler should contain all the rules related to the execution of orders. We may have to register on their website and create an account for the e-shop.
What are the principles of dropshipping?
Dropshipping is ideal for small sales platforms that are just entering the market. With this method, we are able to significantly expand our product range and attract new consumers.
There are two types of dropshipping: direct sales and brokerage - each of which is different in nature. In the first case, the role of the dropshipping shop is to take orders and payments and to settle accounts with the distributor. The wholesaler takes on all the logistics involved in packaging and shipping the products. However, it is important to know that it is the retailer and not the supplier that is liable for such things as warranty or damage compensation. As far as the intermediary is concerned, the main difference is that we do not purchase products from the distributor - the shop only acts as an intermediary in this situation. The wholesaler is responsible for any defects in the product range.
Regardless of the form of dropshipping chosen, we must ensure that the cooperation agreement with the supplier clearly delineates the responsibilities of both parties, which will avoid misunderstandings in the future. At the same time, the fulfilment of orders by the wholesaler does not release the owner of the online shop from the obligation to prepare regulations for customers.
Dropshipping - key benefits
The dropshipping model seems to be a great solution when starting out in the e-commerce industry. You can offer a variety of goods in your shop while not having an expensive warehouse. Other benefits of dropshipping are:
- low costs for setting up and running a sales platform - the financial outlay is considerably higher for e-stores requiring a more complex infrastructure;
- offering a large assortment to their customers - a wide range of products is a major advantage for large online shops, which is often unattainable for smaller entrepreneurs. Dropshipping allows you to bypass this problem;
- no need to freeze funds - we do not have to buy a certain amount of stock in advance with no guarantee that it will sell;
- no need for shipping staff - the wholesaler is responsible for the packaging process;
- Minimised financial risk when setting up the business - we can never be 100% sure that our business will succeed. By opting for dropshipping, we don't have to make a large investment, so if something goes wrong, we won't suffer a big loss;
- no need to rent a warehouse - storing goods often costs a lot of money if you lease warehouse space. Dropshipping solves this hassle;
- no need to deal with multiple external companies - the wholesaler is responsible for all order processing, so we are not obliged to look for new contractors.
Looking for the perfect solution for your e-commerce business? In addition to dropshipping, consider fulfillment. Receiving goods, storage, picking, shipping and other duties you can entrust to a courier company. For more information, go to the page dedicated to the InPost Fulfillment service."
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