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Dropshipping is a way for companies to generate additional income.
Dropshipping is an approach to inventory management and order fulfillment where the retailer or wholesaler transfers customer orders and shipment details to the manufacturer, who then ships the goods directly to the customer.
Dropshipping is an approach to inventory management and order fulfillment leveraged in supply chains in which a retailer does not keep goods in stock (to avoid having more inventory than is needed and keep upfront costs lower). Instead, the retailer transfers customer orders and shipment details to the manufacturer, another retailer, or a wholesaler with the products in stock, who then ships the goods directly to the customer.
Dropshipping enables wholesalers and retailers to sell products that they don’t have in stock in their warehouses. One of the biggest benefits of using a dropshipping method is that wholesalers don’t need to deal with large amounts of product inventory that they don’t usually sell on a regular basis. It also keeps upfront costs low. Dropshipping is also a great way to test if products appeal to customers, without risking a large investment in inventory.
The biggest risks with dropshipping are:
Curious to learn more about dropshipping? Here are 3 Steps to Dropshipping Success. If you’re looking to get started with dropshipping, get the white paper with 10 Tips for Successful B2B Dropshipping.
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