What is dropshipping and how does it work?

Dropshipping is an e-commerce business model where an entrepreneur sells products directly from suppliers or manufacturers without physically handling the inventory. Instead of stocking products, the entrepreneur lists the supplier's items on their online store and only purchases the products after receiving an order from a customer. The supplier then directly ships the products to the customer. Dropshipping eliminates the need for upfront inventory investment and allows entrepreneurs to focus on marketing and customer acquisition. The entrepreneur acts as a middleman, earning profit by marking up the supplier's prices. This model enables individuals to easily start an online business without the hassle of managing inventory and shipping logistics.

This mind map was published on 9 July 2023 and has been viewed 99 times.