What is Dropshipping?
Dropshipping is a business model that is based on the online sale of retail products without having to keep them in stock. We will do this through agreements with online platforms, manufacturers and/or wholesalers, and these will be the ones who will be in charge of sending the order to your client. What is achieved in this way is, on the one hand, not having to invest in stock, and on the other, selling products that you do not physically have.
In summary, in Dropshipping you sell the products of a wholesaler, and he sends them (and stores them) to the customers, without you actually touching the product. This is why it is a booming business model in Spain, since you can create your online store and start selling from the first moment without investing in stock and/or storage. It is a type of business that requires very little investment and has very little risk.
How does Dropshipping work exactly?
The operation of the Dropshipping business model, in general terms, is quite simple. Once you have the online store operational, you can sell the supplier’s products without having them in stock. Thus, when a user buys a product in your eCommerce, the supplier will also receive a notification and proceed with the shipment of the order. This obviously has its advantages and disadvantages.