Dropshipping is a retail fulfillment method where the seller doesn’t keep products in stock but instead transfers customer orders to a third-party supplier, who then ships the order directly to the customer. Here’s how it works in detail:
- Product Listing: A product is listed for sale on the dropshipping store’s website, with details and integration setup with the supplier.
- Order Placement: A customer visits the dropshipping store, selects the product, and places an order.
- Order Forwarding: The store automatically or manually forwards the customer’s order and shipping details to the supplier.
- Shipping: The supplier, which can be a manufacturer, wholesaler, or another retailer, directly ships the product to the customer without the seller ever handling the physical product.
- Customer Updates: The dropshipping store keeps the customer informed about the order status and shipping progress until delivery.
This method allows sellers to operate without maintaining physical inventory, reducing overhead costs while offering a wide range of products.
