Dropshipping, in simple words, is an easy way to implement internet business. The essence of this business model on the Internet lies in the low costs of the seller for the sale of products. Most online stores do not have marketed products. As a rule, they sell the goods through suppliers who, in turn, send the order directly to the buyer.

In such a model, the entrepreneur is the third person, the bridge between the customer and the supplier. For his intermediary work, he collects a percentage from which the real income of the entrepreneur is formed that works through dropshipping. Typically, this delivery model attracts those entrepreneurs who seek efficiency and low overhead.

However, it can be expensive, especially when it is an issue of the client experience. In this article, we would like to tell you about the essence of dropshipping and describe the working principle of this method.

The essence of the dropshipping business model

The unique feature of this business model is its low cost. To start your dropshipping work, you should only be engaged in promoting the products you sell to your customers. Thus, a financial investment is necessary only to increase the popularity of your product. Dropshipping has a simple algorithm.


The customer visits the site of your shoe store and sees the model you like. Also, he will write to you to place an order. You will accept the order and payment. After that, you inform your customer that your goods are being sent to the specified delivery address. Then you must give the shoe supplier the information and the cash minus your commission.

This is a participant in this process that fully delivers the goods to the customer. So, your main task is to take the order and agree on delivery with your supplier. Thus, a business model with a dropshipping basis will remove the obligation of material execution of your order or service. You will need to perform several operations, such as attracting and consulting customers and financial processes.

Strengths of dropshipping

Dropshipping has several strengths:

  1. Small expense. You do not need to pay for warehouse rent or make other payments because you do not own the product you sell.
  2. Small startup capital. This model is perfect for those entrepreneurs who do not have a large budget to start their businesses.
  3. Low-risk level. As described above, dropshipping does not imply the purchase of goods or their storage. So you will not have a monetary loss if your business fails.
  4. Workplace. An entrepreneur does not need to rent an office space. He can carry out his professional activity from anywhere in the world.
  5. Ability to scale businesses quickly. If you call a large number of suppliers, then you can increase the number of orders from your customers.