The dropshipping world for startups has had massive growth in the past few years.
This is due to the scarceness of financial investors willing to consistently nourish their investment for the long haul.

What beginners need to know about dropshipping:

The Term ‘DropShip’ or ‘Drop Shipping’ is a very simple understanding of the following concept: purchased items being shipped from the producer, creator or licensed fulfillment company or wherever the products are stored, directly to the consumer or end-customer.

As a business retailer, it is all good and well to have your entire order fulfillment to your customers outsourced to a specialized wholesaler/manufacturer that offers dropshipping services. This means that stock will be stored and warehoused by the dropshipping company; they will also do the packaging and shipping of orders to your customers.

The dropshipping concept however simple, needs careful implementation. The online shopping cart administrator or store owner must insure that when orders are made, confirmation needs to be made of this order with the company doing the dropshipping. This is done using many different methods that include emailed spreadsheets to uploading to online wholesale ordering and more.

Each dropshipping company needs to supply a manual or guide on how to submit orders and the details of the entire set of processed.
Popular processes are:

  • How you would receive stock change information.
  • How price change notifications are received.
  • How orders are made.
  • What payment methods are accepted and how payment is made.

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The image below illustrates the dropshipping process: