Dropship model

Introduction: The dropship model is an order fulfillment method where a store doesn't keep the products it sells in stock. Instead, when the store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This means the seller doesn't handle the product directly. The dropship model significantly lowers the entry barriers to starting an e-commerce business by reducing the need for upfront capital investment in inventory and storage, making it an attractive option for new entrepreneurs and established businesses looking to expand their product offerings without additional risk.

Advantages and Challenges:

• Lower Start-Up Costs: Minimal investment required to launch an e-commerce business.
• Wide Product Selection: Ability to offer a broad range of products without holding inventory.
• Dependence on Suppliers: Success heavily reliant on the reliability and quality of suppliers.