Dropshipping: What is it and how does it work?

The dropshipping has revolutionised the world of e-commerce, allowing entrepreneurs all over the world to start businesses without the need for large initial investments. This business model has gained popularity in recent years, especially in Spain, thanks to its simplicity and its ability to reduce logistical and financial risks. In this article, you will discover in depth what dropshipping is, how it works and how it can benefit your online business.

What is dropshipping?

The dropshipping is a business model in which retailers sell products directly to the end customer without the need to stock their own inventory. Instead of managing warehouses or worrying about shipping, the retailer works with a supplier who takes care of the entire logistics process, from order preparation to delivery. This model allows sellers to offer a wide range of products without significant investment in inventory. It also eliminates the risks associated with overstocking, making it an attractive option for those who want to start an online business with limited resources. Examples of popular products for dropshipping include fashion items, technology gadgets, home accessories and niche products such as educational toys.

What is ghost dropshipping?

The ghost dropshipping is a variant of the traditional model. In this case, vendors work anonymously with their suppliers, ensuring that the end customer never knows who is handling the shipments. This strategy is ideal for brands that want to build their own identity and maintain a perception of exclusivity with customers.

How does it work?

Dropshipping is based on an effective partnership between the merchant, the supplier and the end customer. Below, we break down how this process is carried out:

1. Product selectionThe merchant selects the products he wants to include in his online shop. These products are available in the supplier's catalogue.
2. Sale and receipt of orderWhen a customer makes a purchase in the online shop, the merchant receives the payment and the order data.
3. Transfer of the order to the supplier: The trader sends the order details to the supplier, including the customer's delivery address.
4. Preparation and dispatchThe supplier prepares the order and sends it directly to the end customer.
5. Trader's profitThe difference between the selling price to the customer and the cost of the product paid to the supplier constitutes the trader's profit.

This system enables entrepreneurs to focus on the marketing, customer experience and business growthThe logistical aspects are left to the suppliers.

Dropshipping suppliers in Spain

Spain has a wide variety of dropshipping providers, each specialising in different types of products and services. Some of the most prominent suppliers in the Spanish market include:

• BigBuy: Offers an extensive catalogue with thousands of products and ecommerce integration options.
• OberloPopular for its ease of use and direct integration with Shopify.
• Suministrosdropshipping.comSpecialised in high demand products and customised services.

Differences between dropshipping and fulfilment Although dropshipping and fulfillment have similarities in terms of logistics outsourcing, they are different models:

• DropshippingThe products belong to the supplier, who stores them and sends them directly to the final customer.
• FulfillmentThe retailer buys and stores its inventory in a fulfilment centre. This centre is responsible for the preparation and shipment of orders.

The fulfillment is especially useful for businesses that handle large volumes of orders and need to optimise their delivery times.

Advantages of dropshipping for your ecommerce

Dropshipping offers a wide range of benefits for entrepreneurs, making it an attractive option for both new businesses and established shops that wish to expand their catalogue. Its main advantages include:

• Low initial investmentYou don't need to invest in inventory, which significantly reduces upfront costs.
• ScalabilityYou can easily expand your product catalogue without worrying about storage space.
• FlexibilityYou can manage your business from anywhere with internet access.
• Risk reductionYou only pay for products sold, eliminating the worry of overstocking.

Dropshipping for B2B companies

Although dropshipping is commonly associated with the B2C market, it is also a viable option for B2B companies. In this case, companies can offer specialised or niche products without the need to invest in large inventories. This allows B2B companies to offer a more agile and personalised service.

Winning products

Successful dropshipping depends to a large extent on product selection. The winning products are those that meet specific criteria: high demand, low competition and attractive profit margins.

How to find winning dropshipping products

To identify winning products, we recommend you:

1. Trend researchUse tools such as Google Trends to identify trending products.
2. Market analysisCheck out competitors and see what products are standing out in their offer.
3. Use specialised toolsApplications such as AutoDS will help you identify promising products.

Dropshipping applications

Dropshipping has been simplified thanks to tools and applications designed to automate and optimise the business. These applications allow you to import products, manage orders and adjust prices automatically.

AutoDS

AutoDS is one of the most popular tools in the dropshipping world. It offers advanced features such as automated search for winning products, real-time price management and integration with platforms such as Shopify. It is an ideal tool for beginners and experts alike.

Conclusion

Dropshipping is an excellent option for entrepreneurs and companies that want to simplify their operations and minimise risks. This business model allows you to access a global market, offer a wide range of products and manage your business from anywhere. At Celeritaswe are experts in logistics solutions tailored to the needs of the ecommerce. From our transport services to advanced fulfilment solutions, we are here to help you grow. If you are looking for a reliable partner to manage the logistics of your business, don't hesitate to contact us, take the first step and transform your ecommerce with us!