How Dropshipping Model Helps in E-Commerce Industry


Over the last couple of years especially during the pandemic, the e-commerce and online business grabbed a full attention of everyone and even became a major part of daily lives. Be it clothes or medicines, or groceries, there is nothing left that can’t be purchased online which makes it easy and convenient, hassle-free, and consume less time and energy. The plus point of e-commerce business is that the pandemic scaled up the demand of shopping online, people felt more safe in shopping online especially during the time of lockdown. Nowadays, when people purchase any goods which are delivered or shipped to the address which is mentioned by the customers. There are various methods of shipping, and among them one is the method of Dropshipping.

“Dropshipping is the entry point for a lot of people to business, E-commerce, and entrepreneurship. It’s the perfect first business.” –Lachlan Delchau-Jones


Dropshipping is the method of buying and delivering products to the customers at their doorstep without managing and shipping the products. In this method of dropshipping, the customer contacts the supplier and let them deliver the product to the customer. Thus, the website act as the intermediary, from where the customer selects the product after which the request is forwarded to the supplier who then delivers the product to the customer.  It is said to be quite a good option for those who want to start their own E-commerce startup. It is said to be one of the most profitable models in the E-commerce industry.

The history of Dropshipping takes back to the days of 60s and 70s, the time when internet was just developed. At that time ,mails were used to be delivered to the people and along with it, booklets and catalogue were present which would help customers to place order of the product they require through the booklets and catalogue via telephone. And by this their order were then delivered to their doorstep. E-commerce companies such as Amazon and eBay then transformed the way people used to sell products online. People who want to sell their products could just place them on the sites and let the E-commerce sites drive the traffic towards that product. Currently, sites just need to determine the supplier for the product who does the remaining job for them. Aliexpress and Shopify are some of the websites that made starting an E-commerce business easier as manufacturers and dropshippers are easy to find here.


There are a coupe of advantages people get if the start dropshipping-

  • The e-commerce companies that follows the dropshipping model doesn’t require a large amount of capital for their business to run. They don’t need to pre-purchase the products. So basically, it needs less capital.
  • No need for a warehouse, where one have to store the products. The suppliers are the one who looks after the product by storing them. Therefore, people can select whatever product is appropriate for the business.
  • As the whole shipping process of the products is handled by the supplier, people can do their business from any part of the world.
  • People can even try to sell any kind of product on their website and if it is not bringing any profit, then they can quickly drop it from the list of the website.

Some of the disadvantages of dropshipping model are-

  • People don’t know what kind of quality the product will be of. A bad quality product may cause uproar and can create a bad image of the business.
  • People don’t have any control over the time the supplier takes while shipping the product to the customer.
  • While serving the customer, difficulties may arise, if there is a problem in communication with the supplier.
  • Dropshipping can be expensive as well, nowadays the market is quite competitive and if research is not done properly, then one might see other sites dropshipping the products at a much lesser cost.


Since past few years, there is an increase in the e-commerce business sites that are shifting to dropshipping model and further, in future it is only going to scale up. This model can only become a profitable model for the business, if one plays all the cards properly and follow all the strategies properly. One has to be careful while selecting the dropshipping company for the business, proper study and research has to be done, and then he/she can execute the plan.

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