Have you had experience of drop shipping? What are the benefits and risks compared with a standard retail model?

[John Morris]

Have you had experience of drop shipping? What are the benefits and risks compared with a standard retail model?

[Andy]

Drop shipping is a method of retail sales when a store sells a product purchasing from a third party and shipping it directly to the customer. Merchants purchase items as needed usually from a wholesaler or manufacturer. A key benefit of this model is saving money. You don't need investing thousands of dollars in stock. You can purchase a product after you already made the sale and had been paid by the customer. Small margins are the biggest disadvantage to operating in a highly competitive dropshipping niche. Because it's so easy to get started – and the overhead costs are so minimal – many merchants will set up shop and sell items at rock-bottom prices in an attempt to grow revenue.