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THE ROLE OF DROPSHIPPING IN THE GROWTH OF SMALL AND MEDIUM ENTERPRISES (SMEs): A REVIEW

📘 Volume 13 📄 Issue 5 📅 may 2025

👤 Authors

Dr. Nilaish, Kiran Kumar. P 1
1. School of Economics and Commerce, CMR University, School of Economics and Commerce, Bangalore, India

📄 Abstract

Dropshipping has emerged as a transformative and disruptive model in modern e-commerce, particularly advantageous for small and medium enterprises (SMEs) aiming to minimize operational costs and inventory-related risks. By eliminating the need for warehousing and upfront product investments, dropshipping empowers SMEs to enter competitive markets with greater agility and reduced financial barriers. This review paper comprehensively examines the evolution of the dropshipping model, its foundational framework, and the key technological enablers?such as automation tools, e-commerce platforms, and global supplier networks?that facilitate its implementation. Drawing from recent studies and market analyses, the paper identifies the strategic advantages that dropshipping offers SMEs, including enhanced scalability, rapid market entry, and flexible product diversification. Also, it delves into the inherent limitations and operational challenges, such as supplier dependency, quality control issues, and customer service constraints. The review also outlines emerging trends, including AI integration and cross-border logistics optimization, which are reshaping the future of dropshipping. Ultimately, the paper underscores the vital role of dropshipping in contemporary SME growth strategies, supported by data visualizations and a rich body of scholarly literature.

🏷️ Keywords

Dropshipping Small and Medium Enterprises (SMEs) E-commerce Strategy Supply Chain Optimization Inventory-Free Business Model Digital Fulfillment Vendor Management Online Retail Logistics

🔗 DOI

View DOI - (https://doi.org/10.36713/epra21728)

📚 How to Cite:

Dr. Nilaish, Kiran Kumar. P , THE ROLE OF DROPSHIPPING IN THE GROWTH OF SMALL AND MEDIUM ENTERPRISES (SMEs): A REVIEW , Volume 13 , Issue 5, may 2025, EPRA International Journal of Economic and Business Review(JEBR) , DOI: https://doi.org/10.36713/epra21728

🔗 PDF URL

https://cdn.eprapublishing.org/article/202505-04-021728.pdf

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