Drop shipping-What is it and How does it work?

Hello Friends,

Welcome to another discussion on E-knowledge by theory2learn.

Today we are going to discuss on drop shipping basics and how to get the work done smoothly if you are a beginner.

So first let’s discuss as to what drop shipping is?

Basically, drop shipping is a form of fulfilling a request by a 3rd party by connecting the buyer and seller through a sales platform by keeping a profit through it.

For an Example the 3rd party displays an advertisement on a product the customer buys it and the 3rd party requests the seller to send the product to the customer. This is drop shipping in simple terms, however the customer has no contact with the actual seller but the 3rd party who is liable for the products. The customer may contact the 3rd party for any issues or alterations.

Is drop shipping legal?

Well this question is a gray area some say it is legal and some say it is not, but the higher probability is biased on the statement that it is legal.

What are the web sites that drop shipping can be done?

Basically, there are two categories of sites which are,

·       Whole sale websites

·       Retail websites.

Some popular names for whole sale websites are dh.gate, AliExpress, Alibaba etc and some examples for retail websites are shopify, eBay, amazon etc.

So what drop shippers do is the buy from AliExpress or dh.gate and sell through shopify or eBay keeping a margin.

Other sites linked with drop shipping.

When drop shipping an essential component that is needed is a platform that transaction can be done, the most popular money handling platform used is PayPal.

What PayPal does is that they cater the transaction by keeping a percentage of the total transaction as their profit.

Earlier PayPal and eBay were one company but the work as two these days. But PayPal is owned by eBay.

The common problem that people face when drop shipping is their account being limited, so how the stop this why is it happening these are the topics that we are going to discuss from here on.

Please use the links provided to know as to how this limitation could be prevented.