Dropshipping is the first choice of every person worldwide who are looking for a side income source. There are many reasons, and the first one being risk-free. Everyone looks out for something through which they can make some money without losing even a single penny from their hard-earned active income. For such people, dropshipping is the best option.
There is no particular definition of drop shipping. If you are selling the product of any other person without actually holding the inventory and gets the commission for that, then that is dropshipping. The only involvement of yours is to deal with the customer, and the supplier handles the rest of everything. To understand the concept in a better way, let us discuss the model in detail.
The dropshipping model
In a model of dropshipping, there are three major elements. First of all, we will discuss all these three elements.
The wholesaler is the person who holds the inventory. In the cycle of the drop shipping, only the person who holds the inventory is the wholesaler. They have a particular product which they are selling and have listed that to the hipper. Their role in the model is to list the product and deal with the drop shipper.
They also have to ship the order when given by the shipper and later receive a payment from the customer directly. Every wholesaler has a salehoo review that they have to maintain to attract the drop shippers towards them. We can say that the only person who is having a risk of losing something in the list is the wholesaler.
The consumer is the final buyer who buys the product and consumes it. They are the ones due to which all this chin is built up and the whole source of this chain’s revenue. If they like the product, they will provide a good review to the drop shipper other wise they can get their product exchanged.
- Drop shipper
They are the major element and the reason behind this model. A drop shipper is like a middleman who is linking the wholesaler and the consumer. They have to deal with the customer and the wholesaler both. They will list the product told by the wholesaler and attract the customer to buy that product.
After that, they provide the seller’s order, and all they do is wait for their commission. They are also a risk-free element of this website, but they need to maintain a platform to attract customers, which can incur a little expense. Also, based on the quality of the product sold, they can provide a salehoo review.
- Dropship website
The dropship website is a zero element of the dropshipping model and is not necessarily included in the list. The model can work with and without them. But the website is the choice of the drop shippers as they can easily find the trusted wholesalers through this platform. They can also check the salehoo reviews based on which they can decide to deal with the seller.
The abovementioned is a simple overview of the drop-shipping model that everyone should gain before entering the industry. Based on the model knowledge, they can better perform drop shipping and earn more money.