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How Does Dropshipping Work?

Here are six simple steps explaining how drop shipping works::

Step1: Retailer determines a target audience and what products best suit their needs.

Step2: Retailer partners with Suppliers that can fulfill orders on demand.

Step3: Retailer then lists the products on their personal ecommerce website.

Step4: Customer places an order on the Retailers website, typically paying for both the product and shipping fees.

Step5: The Retailer would then contact the Supplier and pay for the goods at a lower rate while giving them the Customer’s credentials as the shipping address.

Step6: Finally the Supplier packs and ships the order directly to Customer.

For visual learners, here’s a chart detailing the supply chain to make it a little easier to understand.

How does dropshipping work

The customer orders a product from your e-commerce website, which is listed at a profitable margin.

You then forward the order details, either manually or automatically, to the supplier, manufacturer or wholesaler.

Then the Supplier charges you for the product at a cheaper rate, and ships the product directly to the Customer. The shipment is sent without an invoice and is marked with your logo. Thus, the customer is none the wiser. This is generally known as “Blind Dropshipping.”

In conclusion, dropshipping is one of the simplest business models to be implemented in the e-commerce industry. You can theoretically run your own dropshipping business from anywhere in the world. If you have a stable internet connection and a laptop you can potentially start today.

Facebook Group Discussion

10 hours ago

😱 Are you worried about eBay closing your account? One of the MOST important ways to protect yourself is to hide your IP using a VPN or VPS. Check out Stan’s video to learn how to use VPN correctly to protect your eBay account ... See MoreSee Less

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1 week ago

I thought that CJ stocked the products that are on their website in their warehouses? I seem to be wrong. Do they just buy in from suppliers when we place orders? ... See MoreSee Less

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10 hours ago

Why is it taking POD t-shirts so long to be dispatched? What is going on? I have several orders that are aging. ... See MoreSee Less

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10 hours ago

Hello Everyone

I am trying to add a product to eBay for the first time but it is showing me this error:

It looks like there's a problem with this listing.
To maintain a safe trading environment, eBay places limits on the number of categories sellers can list. Currently, you do not have required permission to sell in this category. If you wish to sell in this category, please create a business plan and write to inselling@ebay.com

Can anyone please help?
Thanks
#cjdropshipping
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10 hours ago

I would to import reviews into my store but I haven't seen a product with a review yet. Is it common that reviews are posted for products? ... See MoreSee Less

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