Drop shipping is a form of retail business where the seller accepts customer orders without keeping stock on hand. Instead, the seller transfers the orders and shipment details to a third-party supplier who then ships the product directly to the customer. The seller acts as a middleman between the supplier and the buyer. Dropshipping is a useful fulfillment model for both launching a new store and for business owners looking to test the appetite customers have for additional product categories. The main benefit of dropshipping is the ability to list and potentially sell products before committing to buying a large amount of inventory.
Here are some key points about dropshipping:
- A dropshipper is a person or business that uses the dropshipping model of buying inventory and fulfillment logistics from a third party, instead of warehousing and shipping the products themselves.
- Dropshipping is not illegal, but there can be problems for buyers and sellers. Buyers should research the product before buying and compare prices for similar products from other sellers.
- Dropshipping is a way for retailers to introduce a new product or revenue stream to customers without needing to pay for merchandise up front or store it themselves.
- Dropshipping is a completely legal order fulfillment model used by wholesalers and manufacturers globally.
In summary, dropshipping is a retail fulfillment method where sellers list products on their website without keeping inventory. When an order is received, the seller purchases the product from a third-party supplier who then ships it directly to the customer.
