Dropshipping is a cost-efficient online business model where the seller doesn’t have to purchase or store inventory.

When a drop-shipper receives an order, he purchases the product from a third party and has it shipped directly to the buyer.

– Less capital required – Easy to get started – Low overhead – Flexible on location – Wide option of products to sell – Easier to test and scale

Benefits of Dropshipping

– Low-profit margins – Inventory dependency/issues – Shipping complexities – Supplier errors – Limited order customization

Disadvantages

Dropshipping is one of the best options for people who wish to start their business with limited capital investment and risks.

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