Dropshipping: Definition, challenges, and explanations

Dropshipping is a business management method in the field of e-commerce where the seller does not need to store the products they offer for sale. In practical terms, when a customer places an order, it is the supplier or manufacturer who ships the product directly to the end customer.

This means that the retailer acts as an intermediary between the customer and the supplier without physically handling the goods.

This model allows you to create an online store without investing in initial inventory, making it particularly accessible to new entrepreneurs.

The main advantage of dropshipping is that it reduces initial costs, as the entrepreneur does not need to purchase stock in advance. This limits the financial risks associated with unsold goods.

This method also makes it possible to offer a wide range of products without logistical constraints, as there is no need to manage a warehouse.

In addition, dropshipping offers great geographical and temporal flexibility, allowing you to manage a store from anywhere with Internet access.

When a customer places an order on a dropshipping online store, the seller receives the order and the payment.

Next, the seller forwards the order and delivery details to the supplier, who ships the product directly to the end customer.

The seller makes a profit by selling the product at a higher price than that charged by the supplier, without physically handling the items.

Dropshipping has several notable advantages:

• Low initial investment, making it easy to start an e-commerce business.
• No inventory management or shipping logistics.
• Ability to quickly test new products and markets.
• Flexibility to work from anywhere.

However, it also has disadvantages:

• Margins are often lower compared to traditional sales due to high competition.
• Less control over product quality and shipping times.
• Dependence on suppliers, which can impact customer satisfaction.
• More complex customer service management in the event of delivery or product issues.

Many online stores use dropshipping to sell a variety of items such as fashion accessories, electronic gadgets, or beauty products without having to stock the products.

For example, an entrepreneur can create a store specializing in smartwatches and select several suppliers offering different models. When a customer places an order, the watch is sent directly by the supplier without any physical intervention by the seller.

Some platforms, such as Shopify and WooCommerce, offer dedicated integrations that facilitate the management of dropshipping orders.

• Shopify Dropshipping Guide
• Oberlo - Popular tool for dropshipping
• Shopify Blog on Dropshipping
• EcommerceMag - Resources on dropshipping
• MDN Web Docs Commerce