What is Drop-Shipping? Everything you need to know.

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Hey, Folk’s we have seen many ways to earn money online but when it comes to Drop Shipping people don’t even know the meaning of Drop Shipping so that’s why I have researched on drop shipping and collect everything that you should know.

What is Drop-Shipping?

Drop shipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product and he earns profit per sale.

Difference Between Drop-Shipping Store and Normal Online Store?

This is the biggest point that should be cleared before someone starts a Drop-Shipping Store people usually ask that what is the difference between Drop-Shipping Store and Normal Online Store, For the buyer both the stores are same but the only seller knows what’s the difference.

Drop-Shipping Store

In Drop-Shipping you don’t have to own the products you just have to find a product and set the reasonable price for that and when you will get an order you will order to a retailer who stocks that product he will ship the product directly to the buyer that means no headache of delivering the product.

Profit Margin in Drop-Shipping

In almost every case there is a 20% of Margin but for some of the products there is a high margin, In many cases, the margin can be 60% or 50%.

Normal Online Store

In the Normal online store, each and everything is powered by the owner and team, You have to stock products yourself and you have to ship the product by yourself no 3rd party involved if buyers ask for the refund it’s your loss to start an Online Store you Need a lot of money.

Profit Margin in the Online Store

At this part, I can’t say that well because the person who runs an online store he stocks the products which he purchases in a wholesale at discounted, for example, a Person sells a Mouse which costs 1$ in retail for a normal person and he buys it 50 cents per piece on purchase of 1000 pcs and he sells it for 1$ so the profit margin for him will be around 40-50$ it depends on the sale flow of the product.

Final Words

When it comes to Drop Shipping you don’t have to spend a lot of money but if you want to make an online store then you should have to spend a lot of cash on it and if you don’t get success in dropshipping then there will be a little loss of money and if you will be not successful to run the online store then you are going to bear a lot of loss, but if you want to try drop shipping you can try Shopify for free 7 days.

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