In the Dropshipping method, the store owner doesn’t purchase the products from manufacturers or big distributors. They don’t need to maintain an inventory, own a warehouse for storing products or even don’t need to ship their products to customers themselves.
This model reduces eliminates certain costs and liabilities of stocking the merchandise themselves. The best part is that you don’t need to take risk of investing a huge sum of money. Basically, Dropshipping works in 3 simple steps:
- Selling an item on your Magento store
- Forwarding the order information to the supplier
- Supplier will ship the order to the customer but using your name
Ostensibly it seems highly promising but it can be a confusing and tricky process. That’s why you must also know the pros and cons of Dropshipping.