Advantages for the online retailer:No storage necessaryNo sell-off riskNo hassle when shipping the goodsPackaging either neutral or even with the online retailer's labelShorter shipping times, as there is no need to use online retailers
Cost savings for online retailers compared to their own warehousing and shipping
No minimum order quantities
Since the goods in the online shop don't require upfront norway cell phone number list financing, this model is particularly suitable for start-ups. It allows you to build an online business with virtually no risk.
A particular strength of dropshipping is its high degree of flexibility. You can expand your product range systematically and gradually, as you can add products to your portfolio without upfront financing and test how sales develop first. With your own inventory, there's the risk that the products will become unsold and tie up capital.
Customer buys in the online shop
Online retailer simultaneously buys the product from the wholesaler at the purchase price
Shipping of goods by the wholesaler directly to the end customer
Payment by customer to online shop at the sales price
Payment by online merchants to wholesalers
The margin remains with the online retailer.
This is how the transaction is carried out
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