How to Launch an Online Ecom Business without a Store

What is Drop shipping? 
Drop shipping is technically a ‘fulfillment model’.
 Fulfillment in a business term of course means delivery. So in this sense, drop shipping is the manner in which orders are delivered to customers. 
Normally, selling a physical product means that you need to buy items and then sell them at an inflated price. The way you would normally do this is as a re-seller. 
What being a re-seller really means
Here, you buy wholesale items  and you would then sell it on at an inflated cost and keep the difference. The problem with this model is that you need to invest in stock and then you have to deliver the products. This means you’re taking a risk by ordering the stock in advance. If you make zero sales, then you’ll have lost cash. 
At the same time, it means you need to not only pay for the shipping but also handle all the administrative tasks. You’ll need to take stock and you’ll need to refund customers if there are problems. In short, it’s a lot to take on for an individual hoping to run a business from home in their spare time.
How is drop shipping different? 
Drop shipping changes this because now the wholesaler is handling delivery and they don’t require you to order in bulk. So simply: you list the items for sale in your online store. Then, when a customer orders them, you pass that sale on to the wholesaler. They then send out the product on your behalf and make sure it reaches the buyer and you get the money!
 Drop shipping vs Affiliate Marketing 
This might sound very similar to affiliate marketing but there are a few differences. For starters, the amount of money you earn will tend to be higher than affiliate marketing. With affiliate marketing you only get paid a commission for each sale.
When you operate as a re-seller, the usual pricing method is called ‘keystone pricing’. Keystone pricing means that the amount you’re selling the product for is 2 times the amount you pay for it. This is one of the most common conventions for this type of business and to all extents and purposes, drop shipping businesses are re-sellers. They also buy low and sell for more.
Drop shipping benefits
The other big benefit of drop shipping  is that the customer never knows that it’s not you who is selling the product. You’re not sending them to another website where they can checkout and buy the product. You’re just selling them the product as though it were your own. This is fantastic because it means that your business looks much more professional. 

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