Dropshipping

Definition

Dropshipping is an e-commerce fulfillment model where an online store sells products without keeping inventory. Instead, when a customer places an order, the store purchases the product from a supplier who ships it directly to the customer.

How Dropshipping Works

The dropshipping process usually follows three basic steps:

1. A customer places an order in an online store
2. The store forwards the order details to a supplier
3. The supplier packs and ships the product directly to the customer

Because the supplier handles storage and shipping, the retailer can focus on marketing, product selection, and customer service.

Why Businesses Use Dropshipping

Dropshipping is popular among online entrepreneurs because it:

• Requires low startup investment
• Eliminates the need for inventory storage
• Allows stores to sell many products without stocking them

However, success still depends on product selection, marketing strategy, and reliable suppliers.