Dropshipping is an order fulfillment method that does not require a business to keep products in stock. Instead, the store sells the product and passes on the sales order to a third-party supplier, who then ships the order to the customer.

Dropshipping is a simple, popular way to start an online business. It removes common retail challenges such as buying, storing, and shipping inventory.

When a dropshipping store makes a sale, it forwards the order to a supplier, who handles delivery to the customer. This lets store owners focus on other tasks, like marketing and branding.

Dropshipping is a retail method where an online store doesn’t keep its products in stock. Instead, when a customer makes an order, the store forwards it with payment to a dropshipping supplier. The supplier then ships the product to the customer.

Many business owners prefer dropshipping because it passes the task of order fulfillment to suppliers. This means stores don’t need to invest in warehouse space or risk getting stuck with unsold inventory. As a result, businesses can allocate more resources to other retail activities such as marketing.

What is a dropshipper?

A dropshipper is the person or business that accepts customer orders and passes them to a supplier for fulfillment.

Dropshippers often run online stores to market and sell products. When a customer buys a product, the dropshipper places a corresponding order with the supplier.

Let’s say you own an online dropshipping store that sells pet products. When a customer purchases a cat collar, you forward the order to your supplier, who has a warehouse of pet goods.

(Confusingly, in some resources, the term “dropshipper” refers to the supplier. This article defines dropshippers as sellers of dropshipped products.)

What are dropshipping suppliers?

Dropshipping suppliers fulfill orders made by retailers on behalf of customers. They store products, package them for shipping, and organize delivery to the customer address.

You might work with an individual supplier or a platform that hosts a directory of suppliers, such as AliExpress. Some manufacturers also operate as dropshipping suppliers.

In the pet store example, the company that receives the order, packages the cat collar, and ships it to the customer is the dropshipping supplier.

What about wholesalers?
Wholesale suppliers are not part of the dropshipping process. Unlike dropshipping suppliers, wholesalers sell bulk quantities of products to retailers, who then sell them to consumers.

If your pet store buys a large quantity of organic dog treats at a discounted price, stores them, and then sells them individually to customers, you are a traditional retailer working with a wholesaler.