What is Dropshipping? | shopifinds.com

What is Dropshipping?


What Is Dropshipping And What You Need To Know Before You Start

You’ve probably come across the term dropshipping or heard someone mention it and never got the grip of what the word stands for; here is a 101 on what you need to know about drop shipping.So what is dropshipping?


Dropshipping works the same way as your retail store but in a different or rather complicated way. A store is set up to sell products to the customers just like a typical retail outlet, but in drop shipping, the stores’ products are purchased from a third party (wholesaler/manufacturer) who is not involved in handling or seeing the product.

To break it down in a straightforward way; an average store handles the product from the manufacturer, and the merchant owns the product while working hand in hand with the manufacturers to see how the products’ orders are being fulfilled.

Just like any other inventory, this business has its pitfalls and thumbs up.

Advantages of Dropshipping business

Minimum capital is needed

Dropshipping is an e-commerce method which saves you from the headache of borrowing money to purchase products. The only time you buy a product is when a customer makes an order. A business acumen need very little cash to make it in the drop shipping industry. What is dropshipping?


The set-up is easy

Dropshipping saves you from; packing and shipping orders, tracking of orders to account for them, managing the stock and ordering products and finally you don’t have to pay for a warehouse.

Less Overhead

You are saved from paying for the warehouse or purchasing of inventories hence you don’t have to worry about too many expenses. Prosperous dropshipping were born by being handled on a laptop on the comfort of a couch. Though, as times goes by you will realize your business is doing well so expenses might increase but they will never compare to what you will spend in an ordinary retail store.


You don’t have to be in a strategic place to sell products. An internet connection to communicate with customers is what you need, and that’s it.

Product variation

You can always mention a new product on your site at any given time the supplier stock an item, and the best part is that there are no extra charges incurred.

Easy to gauge

Unlike a physical retail store where you have to think twice before stocking the product since it will call for double the work you will handle, in drop shipping you are saved from such thoughts. When you stock inventories on drop shipping, you only worry about customer service and not extra work.

The thought of less extra work, more money, and flexibility of drop shipping makes drop shipping a loveable job, but not until you see the disadvantages associated with this job.

The Disadvantages  Dropshipping business

Small margins

Having a good set-up website and customer service will convince you, how customers will prefer your highly (a bit) priced product to the less priced similar product that is set on a poor site and less customer support offered. But that’s never the case; at the end of the day (most) customers will zero down to the pricing of the product. Hence the competition in drop shipping is very high. There is a way of dealing with this problem, which will be discussed in the subsequent chapters.

Issues with the product

When you don’t own the inventories in your store, you will always find yourself between a rock and a hard place. You will have to keep tabs of manufacturers who keep changing their inventory daily which might be difficult to stock because of the added technological advancement that your suppliers are not ready to put up with.

Shipping intricacies

the best part about drop shipping is that you get not to stock inventories from different suppliers, but the nightmare comes when it comes to shipping different products from your store. A customer buys three different products from your store that are from different suppliers; you will need to work out the shipping cost.

The first shipping cost option is to pass it down to the customer who is going to assume you are day-robbing him or you opt to automate the calculations which will turn out to be a very hectic process. Whichever way you opt for, there is no escaping when it comes to shipping products.

Owning people’s mistake

You are going to own mistakes that had nothing to do with you, and some (very few) will be yours. You will find yourself fulfilling the wrong orders to customers, and you will have to go down on your knee and beg for their forgiveness or ask for understanding from customers who received poorly packed items or ones that are low quality, and those will be suppliers mistakes. So you will have to brace yourselves or prepare to see your business go down the drain.


We say that no job is secure so that saying applies to drop shipping. There are days you will feel in heaven for having started drop shipping business and days you just want to think twice about what the future in drop shipping holds for you. In the end, we just hope it works out.

The future of this chapters will try its best to educate you on how to avoid simple pitfalls in drop shipping and how to maneuver your way to having a successful drop shipping store.

Ecommerce dropshipping

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