What is Dropshipping?

It is a model preferred by people who will take the first step to become a seller in the stockless e-commerce model. The advantages offered to the seller make it much easier to try this method and enable sellers to gain experience in e-commerce. There is no need to deal with issues such as production, storage, cargo management, etc.

In dropshipping, you will not have problems such as stocking and storing products. Dropshipping, an e-commerce model that acts as a bridge between the buyer and the seller, can be described with a term such as “direct shipping”.

How to Do Dropshipping?

In stockless e-commerce businesses, there are three parties: buyer, seller and supplier. In this e-commerce model, the leading role is entirely the seller. Seller and supplier are the same person. Sellers who do e-commerce without stock do not have to deal with warehousing, as they do not have to keep stock. The products to be sold must be listed on the e-commerce site or virtual marketplaces. Your customers order products and deliver them.

After the order is placed, the shipping and shipping process of the product is the responsibility of the supplier. Suppliers deliver products to customers from their own warehouses. In this way, the supplier makes sales without dealing with marketing activities. At this point, the seller carries out sales transactions without dealing with production and storage. The revenues obtained from the orders are divided between the two parties.

Dropshipping Advantages

• It is low cost.
• There are no production, storage, packaging, salaries or similar expenses.
• A low capital is sufficient to start.
• There is no need for very large organizations to start.
• Transactions can be managed by one person via a computer.
• Since large capital is not used, the risk of loss is very low.
• There is the opportunity to work with many vendors from different sectors.
• Product diversity increases with the number of suppliers.
• When product diversity is increased, access to a wider customer base is achieved.
• Since there is no need to deal with storage operations, it is possible to work from home and continue the entire business process digitally.
• You are solely responsible for the products for sale. The supplier must deal with inventory costs.
• The supplier takes care of this process during the shipping phase. In this way, you do not need to make cargo agreements or deal with the shipping process.

Dropshipping Disadvantages

• Since we work on commission, the profit margin is low.
• Your profit decreases due to commissions received by payment infrastructure providers and Marketplaces.
• Since it is a more comfortable initiative compared to other e-commerce models, the number of entrepreneurs in this field is quite high. Therefore, there is a competitive environment.
• There is competition not only with Dropshipping people but also with all e-commerce sellers.
• In some cases, it is necessary to reduce prices in order to get ahead in the competition. In such cases, your profits will decrease.
• You need to constantly check the supplier’s stocks. Lists should be updated by checking stocks.
• The seller is responsible for all problems that may arise in matters for which the supplier is responsible. Therefore, if a problem is encountered, the seller has to deal with the problems.
• The seller is negatively affected by any disruptions that may occur in the supplier’s packaging and shipping process.
• It is also the seller’s responsibility to establish good communication with the customer. In this case, the person who will listen to any complaints will be the seller.
• Sellers who do not have detailed information about the products on sale may have difficulty in providing technical support.

How to Receive Payments in Dropshipping?

The shortest way to receive payment in Dropshipping will be traditional banking methods. You can benefit from the opportunity to receive payments by choosing methods such as money transfer and EFT. You can receive your Dropshipping payments very easily and effortlessly by using an active payment instrument. At this point you won’t have much trouble paying. You can complete payment transactions using banking methods.