What is Drop Shipping?
The success of Amazon, the largest e-commerce retailer in the world, can be credited at least in part to drop shipping practices.
- Dropshipping is a retail business model in which a seller accepts customer orders without keeping the products in stock.
- Instead, when a customer places an order, the seller purchases the product from a third-party supplier, who then ships it directly to the customer.
- A dropshipper is an intermediary between consumers and suppliers, curating and promoting the goods that suppliers ship to customers.
- Many businesses prefer dropshipping because it removes costs like warehouse storage and unsold inventory.
- The dropshipping model is attractive to smaller retailers and entrepreneurs because it requires relatively little capital investment and overhead.
- Drop-shipping is not illegal, but there can be problems for buyers and sellers.
