Chapter 1
What is Dropshipping?
Dropshipping, in layman terms, is a business model where you can start
with your own business and sell products online without keeping anything
in stock.
This means you don’t have to rent or buy a physical place and stock it with
products before actually making the sale.
THE DROPSHIPPING PROCESS
CUSTOMER
YOUR STORE
1
SUPPLIERS
2
3
3
To explain it further, I’d like to depict two scenarios for you:
Suppose Mr. A wants to start his own business and become an independent
entrepreneur. Now, here’s what will happen:
Mr. A found a supplier and bought $1500 worth of goods from him.
He only sold around 15 of those making $500 in sales.
Soon he realized the products won’t sell and he had to close the venture.
This means Mr. A incurred a loss of $1000 worth of inventory.
Now, things could have been different as well.
Meet Mr. B. He also wishes to become an entrepreneur like Mr. A but he has done
his research and started with dropshipping to try out his new business.
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