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Dropshipping Model by Guaripete Solutions
Dropshipping Model by Guaripete Solutions

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What is Dropshipping: definition and main principles

Dropshipping is the form of retail where the reseller (and you actually are the reseller) collects orders from customers and transfers them to the actual manufacturer or another reseller (supplier).

In this model dropshipper doesn’t possess any stocks, he only markets the goods. However the reseller markets the goods setting the prices that are pretty higher than the ones set by the supplier, this difference is your profit.

Dropshipping Model by Guaripete Solutions

When you open a retail store, you have 2 choices: to hold inventory, or not. You can buy products in bulk, unpack them, and ship them to your customers as you generate sales. OR, you can find a wholesale distributor (supplier) who will warehouse the items for you and ship individual items directly to your customer.

Drop ship, “pack and ship”, “direct fulfillment” – they all mean the same thing. A supplier will ship the item to your customer for you, and you never have to handle the product. Drop shipping allows the re-seller to focus on marketing the business and eliminate the hassle, time, and cost of dealing with the actual products they are selling.

In dropshipping model although you don’t need to stock the goods you will still need some money at the very start. The reason is when you receive the order from the customer the money he pays won’t transfer to your account immediately but will be frozen for the safety reasons. At the same time you will have to pay for the order to the supplier which will require your own money.

What do you get for your Money?:

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The Publisher: Juan Rodulfo, Defined by Nature: Planet Earth Habitant, Human, Son of Eladio Rodulfo & Briceida Moya, Brother of Gabriela, Gustavo & Katiuska, Father of Gabriel & Sofia; Defined by the Society: Venezuelan Citizen (Human Rights Limited by default), Friend of many, Enemy of few, Neighbor, Student/Teacher/Student, Worker/Supervisor/Manager/Leader/Worker, Husband of Katty/ Ex-Husband of K/Husband of Yohana; Defined by the US Immigration System: Legal Alien; Defined by the Gig Economy: Independent Contractor Form 1099; Studies in classroom: Master Degree in Human Resources Management, English, Chinese Mandarin; Studies at the real world: Human Behavior; Studies at home: Webmaster SEO, Graphic Web Apps Design, Internet & Social Media Marketing, Video Production, You Tube Branding, Trading, Import-Exports, Affiliate Marketing, Cooking, Laundry, Home Cleaning; Work experience: Public-Private-Entrepreneur Sectors; Other Definitions: Bitcoin Evangelist, Human Rights Peace and Love Advocate. Author of: Why Maslow: How to use his theory to stay in Power Forever (EN/SP), Asylum Seekers (EN/SP), Manual for Gorillas: 9 Rules to be the “Fer-pect” Dictator (EN/SP) Social Media profiles: Twitter/FB/Instagram/VK/Linkedin/Sina Weibo: @rodulfox