You aspire to sell a lot. At the same time, you have neither big capital, nor a  big warehouse ,or numerous employees who would prepare and send products to customers. Here the solution  for you is dropshipping.

Dropshipping is a logistics model, which comes to the aid of those who start with online business – without much capital. How does it work? It consists in sending goods to the client straight from the warehouse. Without the need to have them “in stock”. Thanks to this your online store will not need large financial outlays for “stocking”, nor large spaces for storage, nor a large number of employees. In this logistic model, to run an e-shop, you first of all need an efficient website – thanks to its smooth integration with wholesale stores, you can offer a really huge assortment to your customer.

How does it work?
* a customer orders goods in your e-shop

* an order from a customer is sent to a dropshipping wholesaler

* the wholesaler sends goods in accordance with the order from you directly to the customer

* you earn on the margin selected in your e-shop

Why is it worth it?
* you save – time and money – first of all – you do not buy products before selling them to your client, you also save on employees, on renting and maintaining warehouses and office space, on shipping logistics, and even on creating graphics and content for products
* you can become an e-shop offering an incomparably large assortment – you have no financial, or warehouse and human
limitations

The challenges of dropshipping:*

Agree volume discounts with  wholesalers – the rule is simple – the more customers the higher discounts, at the beginning give up some of your margin – be competitive to get more customers, this will pay off with higher earnings in the future
* choose a good e-commerce software with integration of wholesalers, so that a huge amount of work will be automated , adapt your website for such cooperation
* you have no influence on the work of wholesalers so choose to cooperate with a wholesaler whose production  quality you accept – it is you and not the wholesaler who will be judged by your customers …

Before you decide on a contract with a wholesaler, check:
* what forms of delivery it offers and what their costs are
* whether it has the possibility of automatic updates of stock levels
* whether it will give you the possibility of using promotional materials of products
* what are the procedures in case of complaints about products and their return
* whether it will be possible to insert in shipments advertising materials of your e-shop.

Your primary task in dropshipping model is to gain new clients by promoting your e-shop. It is for promotion that you should allocate a large percentage of funds at the start of your e-business.