What’s Drop Shipping is an online business in which a third-party retailer gives customers an alternative to a cash purchase by setting up a website to sell goods without having to run their stores.
In 2006, many What’s Drop Shipping companies have issues in China, especially focusing on mobile applications. However, most of the companies share a similar business model that enables consumers to buy mobile applications, movies, and TV shows through their website and then later re-sell the content at a higher price.
For example, someone looking for an iPhone application might visit one of these online storefronts and simply place an order. When the buyer receives the app or game, they could then instantly re-sell it to a different buyer or re-sell it to a different platform through a third party such as Kontagent. In this model, consumers never have to leave the comfort of their own homes or interact with a human to purchase goods or services.
What’s Drop Shipping business model doesn’t bear a slipup and mortar store. It may be excluded entirely or joined with drop-packed distribution performance, business model. The only thing you must have is the internet. This removes any physical inventory that may be in the business, thus it removes the overhead and real estate. There is no need to go to a store to buy something for your online business. You can purchase your products from the web itself or from a retail website that sells the products. It is a much more cost-effective and efficient way of doing business.
What’s Drop Shipping generally allows customers to purchase online from a distributor, retailer, or retailer’s online retail site.
For the consumer, a merchant website that lists the products that you want to purchase, and a network of suppliers who will send you those products, and the products are shipped directly to you by the merchants regularly.
For the vendor, it allows them to not have to pay the overhead costs to operate a physical store and also the risk of a loss if a product is not as promised.