Why Dropshipping is a Reliable Source of Income

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Annotated Bibliography
Khalil, Israfilzade. Advantages and disadvantages of drop-shipping. Young People 7.1 (2017): 410-412.
Khalil investigated the advantages and disadvantages of drop shipping and found that less investment is the model’s greatest benefit it enables new start-ups and entrepreneurs to enter into the market (410). Regarding drop shipping as a source of reliable income, this model has a positive cash flow because the customer pays for the product before delivery is made. Another benefit is product variety. According to Khalil, drop shipping allows entrepreneurs to offer different products (411). This boosts client satisfaction and loyalty, increasing chances for referrals and making more profit. In Khalil’s view, product variety contributes to business growth and success (411).
Another significant benefit of drop shipping is customization and personalization. According to Khalil, Customization is the point at which the customer proactively identifies components of their marketing mix whereas personalization is the point at which the organization decides the marketing methods appropriate for the consumers (411). The two strategies are interrelated. They can build customer loyalty and increase sales. Customers do not hesitate to pay extra for a personalized product because they see the item as something of their own.
A product customization or personalization strategy also strengthens the relationship between the brand and its customers while improving customer retention and referrals. The benefits identified in this article indicate that drop shipping is a reliable source of income. For instance, product variety increases sales and customer base, allowing the organization to make more profit. Personalization and customization. The disadvantages of this model include lack of quality control, high competition, and low profit margin due to stiff competition (Khalil 412).
Koroljov, Mark. E-commerce: The drop shipping business model. Business Management (2023): 1-28.
This article examines the benefits and drawbacks of the drop shipping business model and its potential scalability from an e-commerce retailer perspective. Koroljov outlines that dropshipping has emerged as a popular way of establishing an online business (5). According to Koroljov, dropshipping is a retail fulfillment method where an organization sells products it does not stock (7). He states that when a customer makes a purchase order, the company purchases the product from a third party and has the supplier ship it directly to the customer. In this model, Koroljov reveals that a retailer's primary responsibilities include creating an online store, promoting the products, and processing orders (7).
On the other hand, the supplier’s roles are manufacturing and delivering the products to the customer. In Koroljov’s view, a low start-up cost is a key benefit of this model (11). The author asserts that entrepreneurs can start this business with little capital because they do not need to invest in stock or warehouses. This advantage attracts aspiring entrepreneurs who lack s...