Dropshipping

Dropshipping is selling products a third-party supplier ships directly to the customer, so the store never holds inventory.

What dropshipping is

Dropshipping is retail without holding inventory: the store sells, a third-party supplier ships directly to the customer, and the store keeps the margin between the two prices.

Why dropshipping matters

It removes the biggest startup barrier, inventory capital, which is why it’s a common first ecommerce model.

The trade-offs land later: thin margins, little control over shipping speed and quality, and a trust deficit with shoppers who can’t tell the store from a thousand lookalikes.

What dropshipping success depends on

  • Suppliers vetted for quality and shipping time
  • Honest delivery estimates on the product page
  • Differentiation: curation, content, and service
  • Proof that this store, specifically, delivers

Frequently asked questions

Is dropshipping still viable?

As a lottery ticket, less than the ads claim; as a low-capital way to test products before stocking winners, yes. The model works best as a phase, not a destination.

What kills most dropshipping stores?

Slow shipping surprises, quality complaints, and zero trust signals. All three show up as refunds, chargebacks, and silence from repeat customers.

Related terms

Marketplace · Fulfillment · Direct-to-Consumer · Print on Demand