As fast as the internet and technology are growing, the e-commerce business is also increasing. Today, high-speed internet has reached everywhere, so whether it is ordinary or extraordinary if anyone decides to buy a product, they first check it online on e-commerce websites like Amazon and Flipkart. By checking online, they find out whether the products are available or not, if they get those products, they place the order from there, and within a few days, the product ordered by them reaches their home.
Nowadays, people promote their products on social media platforms like- Facebook or Instagram. After that, the buyers will purchase the product. With the help of drop shipping, people are selling women’s accessories, clothing, beauty products and whatnot.
There is another similar e-commerce business model in which the seller does not need to make any significant investment because the seller does not have to keep any physical product collection. There is no need to manage any inventory and no responsibility to get the product shipped. Still, in this, the seller has to take orders only by creating an online store; the rest is the supplier’s responsibilityy product.
The name of this E-Commerce Business Model is Drop shipping. What is Dropship? (ดร อป ชิป คือ, which is the term in Thai) Does the drop shipping business model work? Or how to earn money by doing a drop shipping business.
- Drop shipping is an e-commerce business model in which anyone can profit by selling a product to customers at high prices without physically buying any product or making any significant investment for business purposes.
- It is an online third-party product selling model in which the profit comes from selling a third-party product by creating a store on an online e-commerce website.
- The seller is the one who has an online store and does not require any significant investment. However, the product belongs to someone else, so the seller does not need to invest much capital in the business and can enjoy non-Hessel management.
- All the responsibilities related to the product, such as keeping stock, keeping the collection of the product, shipping the product to the customer etc., are the responsibility of the drop shipping supplier.
How Does The Drop Shipping Business Model Work?
There are mainly three parties involved in the drop shipping business model, one of which is the one that has its online E-Store, where there is a lot of selected product listing. The other is the one with the product in which there can be a direct product manufacturer. Or any wholesaler and third customer who will buy that product in retail.