Ecommerce Fulfilment Services

Dropshipping

choosing a fulfilment company

Definition of Dropshipping

Dropshipping is a retail method where a store doesn’t 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. As a result, the seller doesn’t handle the product directly.

How Dropshipping Works

Dropshipping is a streamlined process that involves three main steps from order to delivery:

  1. Customer Places Order: A customer orders a product from your online store.
  2. Order Forwarded to Supplier: The order is then forwarded to your dropshipping supplier.
  3. Supplier Ships Product: The supplier ships the product directly to the customer under your store’s name.

Benefits of Dropshipping

Dropshipping offers several benefits that make it an attractive option for business owners:

  • Low Startup Costs: You don’t need a large investment to start, as you don’t buy inventory upfront.
  • Flexibility: Run your business from anywhere with an internet connection.
  • Wide Product Selection: Offer a variety of products without worrying about storage space.
  • Reduced Risk: Since you don’t stock the product, there’s less risk of excess inventory.

More Fulfilment Terms

Omnichannel Retailing refers to a retail strategy that integrates different methods of shopping available to consumers. This could be through online channels such as from a mobile app, a website, telephone, or physically visiting a brick-and-mortar store.
Incoterms, short for "International Commercial Terms", are a set of rules.

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