The difference between dropshipping and a conventional eCommerce store is that you do not need to acquire any stock with dropshipping. There are dropshipping websites that will provide the product range and take care of the delivery to the customer as well.
Sounds perfect right? Well, it can be good but you need to check the commission levels first. Most dropshipping websites are not too generous with their commissions so you will need to shift a high level of stock to make a good income.
With Dropshipping you do not need to acquire or maintain any inventory. You will instead partner with a third-party supplier who will handle all of the logistics regarding your orders. This includes shipping, packaging and storing items. In comparison to a conventional eCommerce store, this eliminates the cost of investing in stock and allows for a lower overhead when running an online business.
When deciding which niche you want to be in, it’s important to consider how dropshipping could benefit your business model. Not only are there no upfront costs associated with purchasing inventory, but also no risks if items don’t sell as anticipated. Furthermore, with dropshipping, entrepreneurs have access to a larger selection of products from many suppliers that may be difficult to source on their own due to limited resources and time constraints.