Drop Shipping

What is Drop Shipping?

Drop Shipping is a retail fulfillment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

Why It Matters

• It allows entrepreneurs to start an e-commerce business with very low upfront investment in inventory.

• Merchants can offer a wide variety of products without the need for a physical warehouse.

• The model is highly scalable since the supplier handles the logistics of fulfillment and shipping.

• It reduces the risk of being stuck with unsold inventory that has already been paid for.