Ecwid Ecommerce Glossary

Dropshipping

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What is dropshipping?

Dropshipping is a fulfillment method when the seller does not have real products in stock. After the purchase, the seller transfers the order to a wholesale company or manufacturer who fulfills this order.

Dropshipping is a convenient partnership system with distributed responsibilities: the seller owns the sales channel, the wholesale company assures the stock and fulfillment, the manufacturer produces the goods. Everyone is happy! The seller gets the share of the retail price, the wholesale company gets the dealer percentage, and the manufacturer has a steady and powerful production flow.

Is dropshipping profitable?

Yes, the dropshipping model is profitable and can generate income. However, the margin is lower compared to traditional online retail due to high competition.

How to make money with dropshipping

Dropshipping is an easy-to-start business model. This is a hard to beat advantage that allows dropshipping entrepreneurs to create multiple stores and test different potentially profitable niches or products simultaneously. Dropshipping stores do not require spending much time to maintain them, so you can have several profitable stores that will generate significant revenue even with low margins.

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