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What is dropshipping
What is dropshipping? How does it work in 2024?
Dropshipping is a fulfillment model that allows entrepreneurs to outsource handling and shipping products to a third party. This fulfillment method can appeal to entrepreneurs seeking efficiency and low overhead, but it has trade-offs.
illustration of packages with Amazon Smile on pallets
What is dropshipping?
Dropshipping is an order fulfillment option that allows ecommerce businesses to outsource the processes of procuring, storing, and shipping products to a third party—typically a supplier.
This fulfillment model commonly appeals to entrepreneurs seeking efficiency and low overhead, but it can come at a cost—especially when it comes to customer experience. This guide will cover what dropshipping is and explore how this fulfillment method can work. We’ll also look at a few dropshipping alternatives that can potentially save you time, lower your overhead, or simplify your business.
Learn more about Amazon's dropshipping policies
What is a dropshipping business model?
In a dropshipping business model, you promote products and provide an online storefront. When a customer places an order, you send the order to the dropshipper and inform customers the products are on the way.
The rest of the physical fulfillment process is out of your hands. In some dropshipping agreements, you may also handle customer service, while the dropshipping service manages the physical goods and fulfillment.
How does dropshipping work?
The exact logistics of dropshipping depend on your arrangement, but typically the dropshipping process follows this general sequence:
Seller signs agreement with dropshipper.
Customer orders online.
Seller receives order.
Customer receives an order confirmation.
Seller forwards the order to dropshipper.
Dropshipper ships the order.
Customer receives their product.
Dropshipping may appeal to entrepreneurs looking to sell generic products, but it can limit opportunities to build a brand and differentiate products. Businesses that use dropshipping may wind up competing on price, leading to low margins.
Home
Learn
What is dropshipping
What is dropshipping? How does it work in 2024?
Dropshipping is a fulfillment model that allows entrepreneurs to outsource handling and shipping products to a third party. This fulfillment method can appeal to entrepreneurs seeking efficiency and low overhead, but it has trade-offs.
illustration of packages with Amazon Smile on pallets
What is dropshipping?
Dropshipping is an order fulfillment option that allows ecommerce businesses to outsource the processes of procuring, storing, and shipping products to a third party—typically a supplier.
This fulfillment model commonly appeals to entrepreneurs seeking efficiency and low overhead, but it can come at a cost—especially when it comes to customer experience. This guide will cover what dropshipping is and explore how this fulfillment method can work. We’ll also look at a few dropshipping alternatives that can potentially save you time, lower your overhead, or simplify your business.
Learn more about Amazon's dropshipping policies
What is a dropshipping business model?
In a dropshipping business model, you promote products and provide an online storefront. When a customer places an order, you send the order to the dropshipper and inform customers the products are on the way.
The rest of the physical fulfillment process is out of your hands. In some dropshipping agreements, you may also handle customer service, while the dropshipping service manages the physical goods and fulfillment.
How does dropshipping work?
The exact logistics of dropshipping depend on your arrangement, but typically the dropshipping process follows this general sequence:
Seller signs agreement with dropshipper.
Customer orders online.
Seller receives order.
Customer receives an order confirmation.
Seller forwards the order to dropshipper.
Dropshipper ships the order.
Customer receives their product.
Dropshipping may appeal to entrepreneurs looking to sell generic products, but it can limit opportunities to build a brand and differentiate products. Businesses that use dropshipping may wind up competing on price, leading to low margins.