What Is Dropshipping?

What Is Dropshipping?

The Term Dropshipping

Dropshipping is an online business model where the entrepreneur sells products without holding warehouse inventory or stock. In this model, the seller (dropshipper) receives the order, then places the order with the supplier — who ships directly to the customer.

How Does Dropshipping Work?

The 4-step process:

1. Customer orders on the seller''s store (Shopify, eBay, etc.)
2. Seller orders the product from supplier with customer''s address
3. Supplier ships directly to the customer
4. Customer receives in 7–30 days

Advantages of Dropshipping

• Low capital: No upfront inventory means starting at $100–500.
• No warehouse: No rent or staff costs.
• Flexibility: Add/remove products anytime without inventory loss.
• Scalability: Volume grows with the same effort.
• Geographic freedom: Operate the business from anywhere.

Disadvantages

• Lower margin: Multiple fees reduce profit (10–20%).
• Quality control: The seller doesn''t see the product before shipping.
• Long shipping: 15–30 days from China.
• Strong competition: Many people try the same niches.

Most Popular Platforms for Dropshipping

1. Shopify: Own brand, full control. Most popular and recommended.

2. eBay: Built-in traffic, easy first sale.

3. Amazon: Strict policies but largest customer base.

4. WooCommerce: WordPress-based, free hosting.

5. TikTok Shop: Fastest-growing platform of 2025.