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Dropshipping begins with sellers listing products in their online store—often items they do not own or stock. These products are usually sourced from third-party suppliers, often overseas, at low wholesale prices. While this model allows sellers to avoid the costs of holding inventory, it also means they have limited control over the product's quality or availability.
When a customer places an order, the seller forwards the details to a supplier, who then ships the product directly to the customer. While this seems convenient, it introduces several risks. The seller has no direct control over the shipping process or product quality, and delays or defects can harm the customer experience. Customers might not even realize their product is coming from a third-party supplier, often located far from them.
Dropshipping sellers earn profit by marking up the price of the product. While this business model eliminates the upfront costs of inventory and warehousing, customers may end up paying a significantly higher price for items that are readily available elsewhere. Additionally, since sellers don't handle the product directly, ensuring consistent quality and timely delivery becomes a challenge.
