Definition of dropshipping

A retail fulfillment method where a store doesn't keep the products it sells in stock.

Explanation of dropshipping

In dropshipping, a retailer sells products to customers without physically handling the inventory. Instead, the retailer purchases the items from a third party and has them shipped directly to the customer.

Example of dropshipping

An online store sells various products, but when a customer makes a purchase, the retailer orders the product from a supplier who then ships it directly to the customer.

Strategies of dropshipping

• Partner with reliable suppliers to ensure product quality and timely delivery.
• Optimize product listings and descriptions for effective marketing.
• Monitor inventory levels and update product availability in real-time.

Related terms

• E-commerce
• Fulfillment
• Supplier management
• Inventory management