Dropshipping

Dropshipping is a sales method that allows you to sell products without having them physically in stock. Once the sale is complete, you forward the order to your supplier, who will then ship the package to the end customer.

What is Dropshipping and Why Sell?

Dropshipping isn't a business model, as many believe, but rather a logistics model that allows a business to potentially generate high profits by covering almost exclusively variable costs. The dropshipping process is very simple: the customer makes a purchase from an online store, the online store's supplier immediately receives the order and ships the product directly to the customer.

Typically, the shipping packaging is anonymous since it goes directly from the supplier to the end customer, who, despite having a tracking number, should not be aware of the presence of a third-party supplier. Dropshipping, therefore, allows an e-commerce business to sell a product through their website without physically having it in stock, or even without having a warehouse at all. The seller does not purchase the products they sell, but merely acts as an intermediary between the buyer and the supplier.

Practical example of how dropshipping works

Imagine you run an online sporting goods store called "SportShop." You decide to sell running shoes without having to purchase them in advance or store them in a warehouse.

Steps in the Dropshipping Process

1. Creating the Online Store
   • You create your own “SportShop” website and add various running shoe models to the catalog, complete with descriptions, images, and prices.
2. Customer Places an Order
   • A customer visits your website and decides to buy a pair of running shoes. They complete the purchase and pay €100.
3. Forwarding the Order to the Supplier
   • You receive the order and forward it to your dropshipping supplier, who sells the same shoes for €70. At this point, you pay the supplier the wholesale price for the shoes.
4. Shipping to the End Customer
   • The supplier receives payment and order details. They prepare the package and ship the shoes directly to the customer in plain packaging or with your branding, if offered by the supplier.
5. Shipping Confirmation
   • The supplier provides you with a tracking number, which you then pass on to the customer. The customer can then track the shipment until delivery.

Advantages

• Cost ReductionYou don't have to purchase stock upfront, reducing financial risks.
• Logistics SimplicityYou don't need a warehouse or to manage shipments.
• Flexibility: You can easily add or remove products from your catalog without inventory management hassles.

Which CMS platforms are used for dropshipping?

As mentioned, dropshipping is not a business model, but a logistics model, so the same logic applies to any e-commerce store:

• Small shop (up to 1,000 products): WordPress WooCommerce
• Medium store (up to 20,000 products): PrestaShop
• Medium-large store with sales beyond national borders: Magento

Can you have more than one dropshipping supplier?

Yes. Leonardo Network can synchronize multiple dropshipping catalogs on any e-commerce platform.

Can I mix products I physically own with products from dropshipping supplier catalogs?

Yes. All import scripts for the e-commerce platforms used by Leonardo Network, whether WooCommerce, PrestaShop, or Magento, can handle in-stock and dropshipping products.

In addition to web development, do you also implement dropshipping suppliers?

We primarily deal with web development, but in some cases we can recommend and implement vendors.

What are the prices of a dropshipping site?

Basically, prices are 10-15% higher than traditional e-commerce sites. This is due to the implementation of the catalog import script and, possibly, if you want to automate them, the order export script.

I already have an e-commerce website, but I want to add a dropshipping supplier. Is this possible?

Yes, it's absolutely possible! Leonardo Network can integrate a dropshipping supplier into any e-commerce platform you use. Our team is experienced in implementing and synchronizing dropshipping catalogs, ensuring new products can be easily managed alongside those already on your site.

Final Thoughts on Dropshipping

Dropshipping allows you to start an e-commerce business with low initial costs and focus on marketing and sales, leaving inventory and shipping management to the supplier. However, it's important to choose reliable suppliers to ensure product quality and on-time shipments.

Contact us to request a quote (Tel. 0566 196 63 59, WhatsApp 333 50 89 814), whether for a new dropshipping project or for assistance or customization of an existing website.

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