Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Dropshipping
A retail fulfillment method where the seller does not hold inventory but ships directly from supplier to customer.
Definition
In dropshipping, the retailer forwards customer orders to a third-party supplier who then ships products directly to the end customer.
Overview
Dropshipping allows eCommerce businesses to sell products without managing inventory, reducing overhead and risk.
Role
A retail fulfillment method where the seller does not hold inventory but ships directly from supplier to customer.
Focus
Dropshipping allows eCommerce businesses to sell products without managing inventory, reducing overhead and risk.
Example
An online store sells gadgets but fulfills orders through a supplier who ships directly to the customer.
Benefits
- Minimal upfront investment
- No need for warehouse space
- Ability to offer a wide range of products
FAQs
Q: Can you give an example of Dropshipping?
A: An online store sells gadgets but fulfills orders through a supplier who ships directly to the customer.
Q: What are the key benefits of Dropshipping?
A: Minimal upfront investment. No need for warehouse space. Ability to offer a wide range of products.