Dropshipping

Also called: resale or direct shipment

Dropshipping is a term from e-commerce. Dropshipping refers to a construction in which the producer, wholesaler or supplier delivers the products directly to the customer without the selling webshop being involved in this logistical process. This has the advantage for the merchant that he or she does not have to deal with inventory management. Dropshipping thus contributes to the efficiency of a webshop's operations. The process can go on when the webshop owner himself is absent and not directly involved. In addition, the website owner does not run the (financial) risks and has no costs associated with inventory management. When shaping a dropshipping structure, the web store software is linked to dropshippers. Most dropshipping software is easy to manage, with no technical knowledge required.

The risks of dropshipping

Although dropshipping is a very effective revenue model, it must be realized that the merchant is still ultimately responsible for the delivery. Any complaints or incorrect delivery must be resolved by the webshop. In addition, there is no exclusivity. Because most dropshippers deliver through multiple suppliers, this construction does not create a distinctive value but rather a lot of competition. In many cases dropshipping is used to complement the main assortment.