Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. As in retail business, the majority of retailers make their profit on the difference between the wholesale and retail price, but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer.
Example
If I post a post a product for #500, you add your own profit and advertise it for like #900. When a customer order the product, you remove your profit from the cost price, pay me my money and I will help you deliver or waybill to your clients without them realizing you don’t have the goods in stock
The benefits of dropshipping are
✓ You have access to a wide range of products
✓ You don’t need a capital
✓ Your clients have a good impression about your business (they can always get a lot of goods from you at great prices)
✓ You don’t need to go through the stress of sourcing goods for your clients (the goods are readily available)
✓ You don’t need to hold stock (your money won’t be tied down)
✓ You, your supplier and clients will stay happy.
for where to source foreign goods to sell on Jumia and konga visit www.investmentlight.com/onlineshopping