There are several different shipping business models practised in modern times and one such model is dropshipping. In this business model, we operate without maintaining our own inventory and need not own a warehouse to store products.
The supply chain is managed by the wholesalers and the dropship supplier. These supplier would manufacture or distribute the products, keep inventory and ship it to our customers on our behalf.
The working process of dropshipping is quite simple. It includes 3 simple steps as follows:
- We publish the products that we wishes to sell on Reteleo website. The customer sees the product and places an order on our website.
- We forward the product and shipping details of the customer manually or automatically to the dropship supplier.
- The supplier then packages and ships the required products directly to the customer.
This is an attractive shipping business model as it eliminates the warehousing cost which will eventually let our customers to pay less. With dropshipping, we don’t need to purchase all the inventory and just redirect orders to the supplier.