What Is Dropshipping

Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product .

This business model is primarily used by e-commerce retailers that do not stock the inventory themselves. It is an online retail business model where the retailer does not need to maintain inventory of the items they are selling. If you love selling but are put off by the thought of maintaining and paying for a storefront, warehouse and other overheads, dropshipping could be the solution for you.

Here's an example: Let's say you want to sell phone cases online. You find a supplier that's willing to dropship their phone cases. You then build an online store and list their phone cases for sale. Customers visit your store and place orders for phone cases. You then order the phone cases from your supplier and they ship it directly to your customer.