Dropship: What is that?

Dropshipping is a method of selling and distributing goods where in the distributor or supplier of the product ships the product directly to the end user on the retailer's behalf. The process of dropshipping involves three parties who take a product from manufacturing to market. They are a manufacturer, a distributor, and a reseller.

Here's how dropshipping works. You create an account with dropshipper/s that provides merchandise that you can sell on your website. The dropshipper typically supplies you with images and product descriptions that you can use for your web pages. When a customer places an order for the product on your site, he or she pays you for the product. You, in turn, place the order with the dropshipper and pay them for the product. The dropshipper then ships the item directly to your customer under your company name. To your customer's knowledge, the product was shipped by you.

There are many advantages of using dropshippers when selling online. Here are a few of them:
1.  Low Capital Requirement, you essentially get customers orders before you order them from your suppliers. This means that your initial investment is minimal, and in some cases none.
2.  No Inventory Required, you don't have to pay extra costs for warehouse space or insurance.
3.  You can diversify your offerings as much as you want. You are only limited by finding the right dropshippers for the merchandise you want to sell.
4.  Your dropship supplier picks, packages and ships the orders to the customer.

If you’re interested in setting up your own retail business, you will need to find a good wholesaler or dropshipper. There are dozens of reliable and informative product sourcing directories or websites online. These companies basically do all the research on wholesale dropshippers and check them out through trade fairs, interviews and reviewing their track records, dropship policies and inventories. With the information they have, they categorize and collate them into useful directories and listings of quality dropship wholesale distributors that offers the best and cheapest deals globally.