Ranjit Podder, PhD :
Dropshipping is a word much used in virtual business world, especially in online business. It is an order fulfillment system where a shop (store) does not preserve or store the goods as is seen in the usual face to face traditional businesses. Instead, in the Dropshipping business, a seller purchases inventory (catalogue) from a wholesaler or manufacturer; receives orders from the buyers; and fulfill the orders by sending the products to the buyers. Actually, a dropshipper asks the wholesaler or the manufacturer online to send the required goods to those who placed the orders. The ordered goods are delivered to the order givers within a stipulated time. Of course, there is an agreement between the wholesalers and the drop shipper. In this way, the dropshipper does not need to invest money for storing different goods rather they receive an amount of profit from the wholesalers and the manufacturers for working as a middleman. For example, amazon is a big online market where there are thousands of products. A dropshipper opens an online store in the amazon market, displays available goods and their prices. The buyers place order to the storekeeper or dropshipper and then the dropshipper informs the wholesalers to deliver the goods to the address of the buyers as per specification.
The buyers pay online to the dropshipper during placing the orders and receive the ordered products within a particular period of time. The main difference between Dropshipping and the traditional retail business is that the seller does not stock or own inventory, they act as the middleman. However, the dropshipper has to pay to the wholesaler before hand for the orders to be executed. The ordered goods are delivered and the dropshipper can withdraw (redeem) the money sent to him online by the buyer in around a month. That is, a dropshipper has to wait for around a month to get back his money with profit. For example, the buyer sends money to the dropshipper during placing the order but the dropshipper cannot withdraw the money before the buyer receives the consignment. However, the dropshipper has to pay the price of the products to the wholesaler for delivering the products. Suppose the buyer buys a product for $500 and the dropshipper has to pay $400 to the wholesaler. The gap between the two prices, here $100, is the drop shipper’s profit.
Today, I am going to introduce a promising Bangladeshi dropshipper who is confident in this business. HM Sirajul Islam alias Shagor is a drop shipper. He has been earning a handsome amount of foreign currency every month. Although, he is currently a Master of Education student at Govt. Teachers’ Training College, Dhaka, he opened an office to smoothly run his business of Dropshipping. He is the owner of some online stores and 10 assistants work to support Sirajul in managing the business. Even during Covid-19 pandemic, he earned around taka one lac per month after deducting the office rent and the salaries of the assistants. Actually, the assistants do not get salary; they get payment based on their work. Sirjul Islam claimed, “It is possible to earn four/five lac taka a month if I can concentrate fully on the business. I do not look for any job but I have created opportunities to give jobs to others. Young hardworking boys and girls with ICT and English language skills can come and join my business.” Shagor is a disciple of Md. Sahidul Islam who is the founder and Chairperson of CM Work Solutions. CM Work Solutions has 15 branches like Shagor’s one and the head office of it is at Shibchar, Madaripur. Mr Sahidul helped Shagor a lot to be successful in the business of Dropshipping.
The size of the Dropshipping market worldwide has been growing faster and the rate of growth increased tremendously during the Covid-19 pandemic. It is anticipated that, if the business of Dropshipping grows at the current rate, the market size will reach $500 billion by the beginning of 2027. If the young ICT and English knowing younger people of Bangladesh engage themselves in this e-business, they can solve their unemployment problem and can earn a huge amount of foreign currency for the country.
(The writer is an Associate Professor of English at Govt. Teachers’ Training College, Dhaka)
