Dropshipping is a retail business model that involves setting up an online store to sell a third party's products without needing a warehouse or stock . In other words, the seller offers products that they bulk sms romania not have , since they act as an intermediary between the customer and the actual supplier. When a purchase is made, the seller simply collects the payment and passes the order to the supplier, who will then be responsible for sending the package to the customer with the retailer's identification.
Dropshipping before and now, the social media revolution
Dropshipping has grown in recent years due to the use of social media. More and more YouTubers and TikTokers are talking about its advantages and the ease of getting rich in a short time. In fact, they even sell courses to teach the dropshipping technique, which can cost between 600 and 1,000 euros. Seduced by the supposed advantages, many young people fall into this practice without knowing that this method can lead to financial losses. In these courses, students are not usually informed of the obligations that sellers must follow.
Pros and cons of dropshipping
In itself, this method is not a scam or a fraud and, apparently, it may seem like an attractive business formula due to its advantages:
There is no need to invest in products because no stock is generated .
Since there is no stock , it is not necessary to have a location to store it , since it is purchased from the supplier according to customer demand.
It is also not necessary to have staff .
The supplier ships directly to the buyer with the online store logo , so there is no need to ship .
The seller receives a commission on the price agreed with the actual supplier.
Although at first glance dropshipping seems very simple and something that everyone can do, there are some drawbacks to consider:
Since the items are sold at very low prices, they work with very low profit margins .
Profit margins are also reduced by high competition due to there being many sellers with the same products.
It requires a high dependence on the supplier , since the seller does not have the products, does not control the stock and delivery times depend on the supplier.
The seller is responsible if the supplier makes a mistake in shipping , such as losing a package or using poor quality packaging.
It is difficult to achieve a brand image , since the seller does not know his own products.
Unforeseen events may arise due to currency exchange , as the seller uses suppliers from other countries.
