What Is Dropshipping? A Complete 2023 Guide

What Is Dropshipping? A Complete 2023 Guide

Do you know, there were more than 2.14 billion digital buyers in 2021? This clearly shows that the dropshipping business is on a boom and it’s the right time to be a part of it. 

If you are planning to develop a dropshipping business and looking for a complete guide then this is the right stop. Here we have mentioned everything that would help you start a dropshipping business. 

So, let’s dive in and check the content in this article-: 

What Is Dropshipping?

Dropshipping is a method of e-commerce order fulfillment that allows the entrepreneur to directly ship products from a third-party vendor to the customer. This allows the owner to not worry about product stocking. 

Moreover, this makes an easy-to-manage business as compared to brand management. All you have to do is take care of your vendors and ensure they provide quality products to the customers. 

How Does Dropshipping Works? 

To make you understand how dropshipping works, here we have included a visual representation of how dropshipping works- 

How Does Dropshipping Works?

Pros And Cons Of Dropshipping

The dropshipping business has its benefits and disadvantages. 

Benefits Of Dropshipping

  • Cost-effective- Dropshipping is cost-effective, as you don’t have to store products which reduces your overhead cost. Moreover, you will also save on shipping products to your customers as it’s done by the drop shipper itself. 
  • Lower Starting Cost- As you won’t require a storage facility and an order processing facility, the starting cost of a business reduces. This allows you to invest in other activities related to your business. 
  • Wide variety of products- You can collaborate with different brands and sell their products through your store. There are several products like fashion products, beauty products, stationary, and more that you can list.
  • Flexible operating location- As it does not require a storage facility, you can operate around the globe and ship products. It does not matter where your headquarter is, your store can assist customers around the globe. 

Disadvantages Of Dropshipping

  • Product Quality- As you are not the manufacturer, there are chances that your vendors might deliver low-quality products to your customers. Although, keeping a regular check of your vendors and reading customer reviews will ensure no misconduct takes place. 
  • Range Of Offers- As there would be different brands listed on your site, the offer or discount would be distinct. Thus you might face difficulties in keeping a track of the offer. Having a team that manages it can eliminate this disadvantage. 
  • Product Delivery Time- In a dropshipping business, you won’t be managing the product delivery, thus the vendors might delay the delivery which upsets the customers. Keeping a fine on every late delivery can help you eliminate this disadvantage. 

Dropshipping V/S Traditional Retail

dropshipping v/s retail business

Dropshipping Business

Traditional Retail

The owner does not hold the inventory

The owner holds the inventory

The owner is not responsible for product delivery

The owner is responsible for product delivery

There might be difficulties in customer support

The owner can quickly resolve customer queries

The initial investment is low

The initial investment is high

No capital risk of inventory

High capital risk of inventory

Does not have complete control of the product quality

The owner has complete control of the product quality

We Created A Dropshipping Store, Check It Out

Laiqa: Wellness Products Dropshipping

How To Start A Dropshipping Business In 2023?

Here we have mentioned some steps that will help you start a dropshipping business from scratch- 

Conduct A Market Research

The first step in building a dropshipping business is by conducting market research. You should also look after your competitors’ pain points so that it’s easier for you to scale up. 

Market research can be done by sending out surveys to customers, reading negative comments of customers on other portals, and so on. 

Create A Digital Presence

Once market research is done, the next step is to create a website, mobile app, or both for your business. This will help you reach a wider audience, and there is no dropshipping business without an online presence. 

You should partner with an expert mobile app development company, as it can help you create both an app and a website. 

Choose A Reliable Supplier

You should partner with the best product suppliers and should look for the following things while partnering- 

  • You should check their product quality.
  • Steps that they will be taking to ship the product.
  • They should have a customer support option.

Should Conduct A Proper Marketing

Marketing allows you to showcase the brand that helps you drive sales. There are various steps that you can take to showcase your brand and products such as-

  • Social media marketing
  • Email marketing
  • Content marketing
  • Advertisements
  • And so on


Now, in the end, we hope that through this post you were able to grasp a complete knowledge of a dropshipping business. We have created a complete guide for you that will assist you to create a dropshipping business from scratch. 

However, if you are looking for an e-commerce app development company for your dropshipping business, then you should check out Appic Softwares. We have a team of experienced developers that have worked across every industry and on almost every technology available such as Flutter, AI, Angular, and more. This can also benefit you in creating a high-engaging application. 

So, what are you waiting for?

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