Once you have your product ready, you need to decide how you will deliver it to the customer. In online sales, there are two main approaches: storing the goods in your own warehouse (or home), or using the dropshipping model, where the supplier or partner stores and ships the product directly.
Why
Choosing the right delivery model determines your business risks, initial capital, and daily routine. If you choose the wrong model for your budget and experience, you might end up in a room full of unsold inventory, or conversely, lose control over quality and delivery times. Understanding the model in advance will help you properly plan finances and avoid unexpected operational problems.
Steps
Both models have their pros and cons. Here's how to make a decision:
Evaluating the Own Inventory (Traditional) Model In this model, you buy products in advance at wholesale prices.
- Pros: You have full control over product quality, packaging, and delivery speed. You know exactly what you have in stock. Profit margins are generally higher because you buy items at wholesale prices.
- Cons: Requires large initial capital to purchase inventory. There is a risk that the product won't sell and your money will be frozen. You need physical space for storage and time to pack orders.
Evaluating the Dropshipping Model In this model, you don't buy goods in advance. When a customer pays on your site, you use a portion of that money to buy the item from a supplier, who ships it directly to the customer.
- Pros: Minimal financial danger on unsold inventory. You can start with very little capital. You can easily add or remove products from your catalog without any financial loss.
- Cons: Less control over quality and delivery times. Lower profit margins on each sale. Difficult to create branded packaging in the beginning.
Considering a Hybrid Approach Many successful stores start with dropshipping to test different products with minimal financial danger. Once they find a "bestseller" — a product that sells consistently well — they buy a large batch of that specific item at wholesale prices and store it themselves to increase the profit margin.
Choosing the Right Platform Regardless of which model you choose, you will need a site that accepts sales. Opening an online store in Georgia is easiest on Sellit, as it is adapted to both models. Managing received orders happens in one space, and thanks to the 0% sales commission (source: sellit.ge/llms.txt), your margin (which is already small in dropshipping) remains entirely yours.
Common Mistakes
- Buying too large a batch the very first time: In the traditional model, buying an amount you have no realistic plan to sell.
- Blind trust in a dropshipping supplier: Sending to a customer without ever ordering the product for yourself to check the quality.
- Hiding delivery times: In dropshipping, not telling the customer that the package might take 2-3 weeks.
- Fixating on only one model: Rejecting a hybrid approach when it would clearly be profitable.
Your Step Today
Analyze your budget. If you have 1000+ GEL in free cash for inventory, consider the traditional model. If your budget is 100-200 GEL and you want to minimize risks — dropshipping is your starting path. Make a decision now.