Dropshipping is a trading model in which online retailers sell products without physically stocking them. Shipping takes place directly from the wholesaler or manufacturer to the end customer.
Dropshipping is a form of online retail in which the seller offers products that they do not store themselves. Instead, an external supplier handles storage and shipping. The retailer focuses on marketing, customer service, and maintaining the online store. Customers order as usual – the difference lies in the background processes. This model is particularly popular with startups and sole proprietors.
Compared to traditional retail, dropshipping requires little capital. There is no need to pre-finance inventory. The risk of overstock or slow-moving items is also significantly reduced. Retailers can experiment with a wide product range without making large investments. This allows the business model to be flexibly adapted and scaled.
Important terms related to dropshipping are: supplier, margin, returns management, product data maintenance, warehouse logistics, shipping costs, target audience, and niche markets. Platforms like Shopify, WooCommerce, or Amazon FBA also often play a role in this context. Successful dropshippers analyze markets, optimize ads, and rely on automated processes. Tools for order processing, payment providers, and tracking are essential.
