Dropshipping is a business model in which ecommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping allows store owners to start an online business with very little up-front investment, but there are some risks involved.
One of the biggest dangers of dropshipping is that you have no control over the quality of the products you’re selling. Because you’re not dealing with the suppliers directly, it can be difficult to resolve any issues that may arise. Additionally, because you don’t have any inventory on hand, it can be difficult to offer refunds or replacements if something goes wrong with an order.
Another risk associated with dropshipping is that your supplier could go out of business or stop carrying the product you’re selling. If this happens, you would have to find a new supplier quickly or risk losing sales.
Finally, because dropshipping requires less up-front investment than traditional ecommerce businesses, it can be tempting to skimp on advertising and other marketing efforts. However, without these tools your store will likely.
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