What is a dropshipping business?
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Dropshipping is an order fulfillment method that does not require a business to keep products in stock. Instead, the store sells the product and passes on the sales order to a third-party supplier, who then ships the order to the customer.
In short, this means you are able to sell merchandise to your customer without holding any inventory.
- A customer purchases an item from your store at the retail price.
- You then forward the order to your supplier, in which you pay the wholesale price.
- The supplier ships the item directly to the customer under your business name.
All you have to do is set up the retail website, find customers, and handle customer support.
The growth of Amazon, eBay, Etsy, Shopify, and other online marketplaces and platforms has made this quite easy.
- Select a niche.
- Perform competition research.
- Secure a supplier.
- Build your e-commerce website.
- Create a customer acquisition plan.
- Analyze and optimize
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Mahugu Nuthu is a content creator known for his compelling and well-researched business analysis. His blog MHGcode.com, provides insights and proven strategies for effective entrepreneurship, side hustle hunting, passive income pursuit, small business ideas, saving and tips for slashing costs.
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