What Is Dropshipping?

What Is Dropshipping? What Is Dropship?
Dropshipping (Dropship) is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.

The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders.

What Is Dropshipper?
A dropshipper is the part of your business operation (which is outsourced) who directly ship one product from wholeseller’s warehouse to the customer’s house without handling logistics and management. This lets dropshippers focus on the ‘actual’ business aspect of their business, i.e., growth and scalability.

These dropshippers earn commission by selling products of suppliers for a markup, earning handsome commissions.

In short, the dropshippers work as intermediaries between suppliers and customers. When an order is received, they transfer the order information to the suppliers and keep the markup amount as commission for themselves. The supplier will then dispatch the product from the warehouse to the customers. In most cases, the suppliers don’t even know that the person buying from them is a dropshipper or an actual person.

How Does Dropshipping Work?
Dropshipping works when a dropshipper fulfills orders with the help of a third party such as wholesaler or an ecommerce store that sells the product at an even lower price .e.g AliExpress. Most dropshippers sell products directly from Chinese manufacturers because the low prices in China for most products.

What is Shopify Dropshipping?

Watch the following video to learn more about What Is Dropshipping and How To Start Dropshipping on Shopify: