After selling products, the seller will collect money from the buyers, then make an order to drop shippers with the wholesale price. DropShippers, are manufacturers or wholesale suppliers, will ship goods directly to customers without seller’s hands.

Depend on the dropshippers, the products can be shipped with the seller labels or supplier labels. The sellers often have to join the membership to have the access to order products.

Drop shipping has the advantages and disadvantages for online sellers.

The advantages of dropshipping:

• Sellers don’t have to pay products before the customer pay. It means that the inventory costs are Zero. Sellers only pay the wholesale prices after they get money from buyers for the retail prices.
• Sellers don’t have to worry about shipping. The shipping is mostly the responsibility of the dropshippers.
• Sellers can access thousands of products.

The disadvantages of dropshipping:

• Sellers have to pay the membership per period.
• The price are not always the cheapest on the market.
• Returned products are often the problem for sellers.