Dropshipping fulfillment refers to a supply chain management method where the retailer does not keep goods in stock but transfers customer orders and shipment details to the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. The retailer essentially acts as a middleman and earns a profit on the markup price of the product.
Its importance is proven by the following benefits:
- Low investment required: You do not need to acquire things beforehand when employing dropshipping fulfillment. This makes it possible to create an e-commerce business or increase your product offering without spending thousands of dollars in inventory upfront.
- Easily scaling: If you are a conventional merchant, every order must be manually received, fulfilled, packed, and sent. That’s a lot of effort for such a tiny group. Suppliers handle all of it for you when you use dropshipping order fulfillment. As a result, you may sell as much as you want on whatever marketplace or channel you want without falling behind.
- Wide range of products to sell: As a dropshipping store, you are not restricted to the products you may offer. If your supplier has a new product in their fulfillment center, you may sell it in your shop for free.
