Drop Shipping

Drop Shipping is an e-commerce fulfillment model where the seller does not keep products in stock. Instead, orders are forwarded to a third-party supplier who ships products directly to the customer.

How Drop Shipping Works

In a drop shipping setup:

1. A customer places an order on the seller’s website
2. The seller forwards the order details to the supplier
3. The supplier ships the product directly to the customer

The seller never handles inventory or fulfillment directly.

Benefits of Drop Shipping

Drop shipping allows businesses to:

• Launch with low upfront costs
• Avoid inventory management
• Test products quickly
• Scale without warehousing

Drop Shipping Considerations

Potential drawbacks include:

• Lower profit margins
• Limited control over shipping times
• Dependence on supplier reliability
• Increased customer support complexity

Clear communication and strong supplier relationships are essential for successful drop shipping operations.