For a long time, owning a business meant that you had to have a physical store, load it with merchandise and hope that scores of people would come through and buy. It also meant having a sizable team of staff equal to the size of your establishment.
Things have changed over the years. Now, you can own an online store in cyberspace, load it with images of actual goods, operate it without a single piece of inventory, sell across borders and all this with minimal staff, in some cases you are the only staff. This is nothing short of remarkable. You can conduct retail business by leveraging on technology.
Some business owners who own a brick and mortar store have realized that there is much benefit in retaining a physical store but exploring the online selling avenue. As a result, they can move more inventories and build a strong brand presence that resonates with millennials.
Drop Shipping enables virtually anybody to operate an online store
Selling online sometimes can beat logic, and some business owners are yet to come to grasp with how it is possible to sell across borders from an online store without actually having to buy inventory upfront and not spend on shipping. Well, this marvel of the 21st century is called drop shipping. Drop shipping is the online business model that has enabled most ordinary people to operate an online store at little cost.
How Does Drop Shipping Work?
A business owner would need to have an online store that supports drop shipping technology. Having an online store on an e-commerce platform such as Shopify would ensure that you can take advantage of the drop shipping model of business.
You would then need to identify suppliers who accommodate drop shipping. This means you can sell their products on your online store without having to keep a physical inventory and the cost that goes with it.
When customers buy the products from your online store all you have to do is inform your supplier of the sale and address of the customer. This process can be automated. The supplier then proceeds to ship the product directly to the customer’s address.
This is a great model for operating a business at a low cost. The supplier would provide the goods at a lesser price, and you would sell at a higher price and keep the difference. This is a revolutionary model that overcomes the challenge faced by many of raising startup capital. Drop shipping also reduces the risk of losing money from a business owner point of view.
— Chris @ Agent Media (@ChrisAMUK) January 11, 2019