Dropshipping
A seller lists a product without holding inventory; the supplier ships directly to the customer once an order comes in. Margins tend to be thinner than holding inventory directly, since the dropship supplier takes a cut for warehousing and fulfillment risk, and the seller has less control over shipping speed, packaging, and quality since another business handles the physical product.
In practice
Margins tend to be thinner than holding inventory directly, since the dropship supplier takes a cut for warehousing and fulfillment risk, and the seller has less control over shipping speed, packaging, and quality since another business handles the physical product.
An online store lists a product with zero inventory on hand; when an order comes in, it's automatically forwarded to the supplier, who ships it directly to the customer under the store's name.
Why it matters
Because the seller never touches the product, quality control and shipping speed depend entirely on a supplier's reliability - problems there become the seller's customer service problem to fix.
Worth knowing
- Works best with a small number of vetted, reliable suppliers rather than a large, loosely managed catalog.
- Return handling is more complex, since returns often route through the seller before reaching the supplier.
- Margins are typically thinner than holding inventory, since the supplier prices in its own fulfillment risk.
Start the conversation
Let's talk it through
Tell us where things stand with putting dropshipping into practice and we'll respond with next steps, no forms, no waiting in a queue.
- A specialist replies directly, not a support queue
- Whichever channel is fastest for you, call, WhatsApp or email
- No long-term contract to start the conversation
