Dropshipping is a business model in which ecommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s doorsteps. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
The main benefit of dropshipping is that it’s possible to launch an online store without any upfront investment. You don’t need to worry about carrying inventory or managing stock. Plus, there are no large financial risks involved in starting a dropshipping business.
However, even though starting a dropshipping business requires little capital, that doesn’t mean that it’s free to run one. In fact, there are several costs associated with running a successful dropshipping business – such as marketing expenses, website hosting fees, and paying for apps & plugins (like Oberlo).
When it comes to accounting for your dropshipping business, you first need to track all of your income and expenses in order to file your taxes at the end of the year. This can be done using accounting software like QuickBooks or Xero – which will make tax time much easier for you and your accountant.
You also need to keep track of your inventory levels and supplier information. This is important so that you know what needs to be ordered from your suppliers and when new stock needs to be added to your store. The best way to do this is by using an app like OberloSuppliers .