Dropshipping

Dropshipping is an online retail model in which a store lists and sells products but does not stock them itself. Once an order is placed, the store passes it to an external supplier or wholesaler, who ships the goods directly to the end customer. The retailer profits from the margin between the supplier's price and the price offered to the customer, without tying up capital in inventory.

How dropshipping works

A dropshipping transaction follows this cycle:

1. The customer places and pays for an order in the online store.
2. The store forwards the order to the supplier, automatically or manually.
3. The supplier picks, packs and ships the parcel straight to the customer.
4. The store handles customer service and any returns or complaints.

Technically the model runs on e-commerce platforms such as WooCommerce, PrestaShop or Shoper, often integrated with wholesalers through APIs or product feeds that automate price and stock synchronisation.

Practical applications

Dropshipping lowers the barrier to entry in e-commerce because it lets you launch a store without investing in stock or logistics — useful for testing niches, running seasonal campaigns and selling a broad B2C catalogue. The critical asset is the store itself and how effectively it moves customers through the sales funnel, so fast, reliable hosting and a smooth platform translate directly into conversions. The model also has real limits: thin margins, heavy dependence on the supplier for stock availability and quality, longer delivery times, and responsibility for handling returns despite no control over shipping. Since many competitors sell the very same products, the edge comes from marketing, branding and the buying experience rather than price alone. In practice, the sellers who succeed treat dropshipping not as a way to earn quickly without effort but as a logistics model behind a well-planned business — they vet reliable suppliers carefully, communicate honest delivery times, and invest in content and customer service that build trust and repeat purchases.