eCommerce
Dropshipping
A retail fulfillment method where the seller does not hold inventory but ships directly from supplier to customer.
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Updated 2025-10-01
Definition
In dropshipping, the retailer forwards customer orders to a third-party supplier who then ships products directly to the end customer.
Overview
Overview
Dropshipping allows eCommerce businesses to sell products without managing inventory, reducing overhead and risk.
Benefits
- Minimal upfront investment
- No need for warehouse space
- Ability to offer a wide range of products
Challenges
- Lower profit margins
- Dependence on supplier reliability
- Limited control over shipping speed and packaging
Example
An online store sells gadgets but fulfills orders through a supplier who ships directly to the customer.
Tags
#Dropshipping#eCommerce#Fulfillment#Retail
Related Terms
Direct-to-Consumer Shipping
Order Fulfillment
Third-Party Logistics (3PL)
