Dropshipping is sometimes seen as a beginner's way into business because it can be easy to set up and doesn’t cost much to get started. However, dropshipping is a common method of sourcing products for many large and successful businesses.
Dropshipping has many benefits, but knowing the potential drawbacks and how to avoid them can help your business succeed. Make sure you know the features of dropshipping so that you can make the right business decisions.
The path a product takes from being made to the hands of a customer is called its supply chain. Each business or person who comes into contact with the product on its journey is a part of its supply chain.
Your supply chain makes up a large part of the fulfillment process for your orders. You should understand the major parts of the supply chain for your product so you know when it makes sense to improve it, such as knowing when to change suppliers, offer different shipping options, or remove a product from your product line.
Simply put, dropshipping refers to any business that fulfills orders by purchasing products from another person or business and has them ship the products to the customer. Because this definition is so broad, it allows for many different types of dropshipping.
Review the different types of dropshipping below to learn what they are and what people and businesses they work best for.