Business Model
Dropshipping
A retail fulfillment method where stores sell products without holding inventory. Orders are forwarded to suppliers who ship directly to customers.
What is Dropshipping?
Dropshipping is a supply chain management method where the retailer doesn't keep goods in stock. Instead, when a store sells a product, it purchases the item from a third party (usually a wholesaler or manufacturer) and has it shipped directly to the customer. This means the seller never sees or handles the product. The key advantage is low overhead costs, while the main challenge is managing customer expectations around shipping times and quality.
Related Terms
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