Low startup costs : Since the seller doesn't need to purchase and stock inventory, the startup costs are much lower than traditional retail businesses.
No inventory management : The supplier takes care of storing, packaging and shipping the products, so the seller doesn't have to worry about managing inventory.
Flexibility : With dropshipping, sellers can easily test new products and adjust their product offerings without the financial risk of purchasing large quantities of inventory.
Scalability : Sellers can easily scale their business by adding new products and suppliers without having to worry about the logistics of storing and shipping the products.
Reduced risk : The risk of unsold stock is reduced as the seller only purchase products from the supplier after the customer has made a purchase.
Dropshipping is a business model in which a retailer doesn't keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. In the case of Amazon, dropshipping refers to a third-party seller using Amazon's platform to sell goods without actually stocking the items themselves. The seller would instead purchase the item from a different supplier who will ship the product directly to the customer.