Dropshipping (https://beseller.by/blog/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.
The dropshipping process works as follows:
- A customer places an order on a dropshipping store's website.
- The store purchases the product from a third-party supplier, typically a wholesaler or manufacturer.
- The supplier ships the product directly to the customer.
- The store keeps the difference between the price it charges the customer and the price it pays the supplier.
Dropshipping has become a popular business model in recent years due to its low overhead costs and flexibility. It allows entrepreneurs to start an online business without having to invest in inventory, warehouse space, or shipping and handling infrastructure. However, it's important to note that dropshipping does have some drawbacks, such as reduced control over the shipping process, potential product quality issues, and increased competition in the marketplace.