What is Dropshipping?
WHAT IS DROPSHIPPING?
Dropshipping is a type of retail business model where the seller accepts customer orders but does not keep the sold goods in stock. It is also known as stockless e-commerce. Due to the numerous advantages it offers to individuals, dropshipping has become quite popular nowadays.
Dropshipping is the process of earning income by acting as a bridge between the buyer and the seller without the need to keep products in stock, as in traditional commerce. The Turkish equivalent of this term, which is already an English term, is “doğrudan gönderim” (direct shipping). It is the most preferred model among commercial activities conducted on the internet.
There are three main elements that make up stockless commerce: the buyer, the seller, and the supplier. However, the seller plays the leading role in these elements because they make sales without holding inventory. The seller lists the products they want to sell on e-commerce websites or virtual marketplaces. When a customer places an order, the information is forwarded to the actual seller, i.e., the supplier. The supplier manages the delivery process of the product. In this business model, all responsibilities lie with the supplier after the order is received. Some of these responsibilities include delivery time, product quality, warranty, and returns.
What Are the Advantages of Dropshipping?
Dropshipping is the most widely used e-commerce model. Its popularity is largely due to the advantages it offers to buyers, sellers, and suppliers. So, what are the advantages of dropshipping? We can list them as follows:
It is manageable, scalable, and expandable.
It has security integration.
It works in conjunction with other types of directory services.
It has identity verification and authorization features.
It can be managed through Group Policy.
In addition to all these advantages, there are also some disadvantages. Firstly, the profit margins are low due to the commission-based nature. Additionally, there is a high number of entrepreneurs in this field, which means there is a competitive environment.