There are a number of places you can sell your products, and there are a number of places to source from. Dropshipping gives you a chance to test a productвЂ™s profitability you always retain the option of purchasing it in bulk later if it sells well. ItвЂ™s hard to know beforehand how well a product will sell. Storing products in a warehouse isnвЂ™t free, and the longer it takes to sell a product, the more you will end up paying in storage fees. Not only will you lose your original investment, but you will lose money on the storage fees. What happens if you only sell 20 percent of your stock?

In addition, when you order a product in bulk, you run the risk of not being able to sell all of it and losing money. If you are jump-starting a business on a small budget, dropshipping is a lifesaver. The top reason to use the dropshipping model, which is what makes it so popular, is that you donвЂ™t have to invest any money upfront. Related: Best Dropshipping Companies & Sites Why Use The Dropshipping Model You donвЂ™t have to take care of storing, shipping, and handling, but you do get to earn money. In other words, as a dropshipper, you are a middleman between the supplier and the consumer. You collect the price difference, which is your profit.The AliExpress supplier ships the product to your customer.You order the product on AliExpress and pay the lower AliExpress price for the item.A customer makes a purchase and you collect the money.You go straight to listing the product on Amazon without buying any stock (you list it at a higher price than the AliExpress price).With dropshipping, however, you donвЂ™t invest in any stock upfront. You ship the product from your warehouse to the customer.You buy a product in bulk (100 units, for example).To understand what dropshipping is and how it differs from the standard eCommerce model, we must first go over the standard eCommerce model, which is as follows:

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