What is Dropshipping and how does it work?
Dropshipping is a service offered by (some, not all) Wholesalers. When you use a Wholesaler who offers Drop Shipping you don’t have to worry about stocking or shipping products.
Instead, when you get an order from a customer, you contact your wholesaler and they ship it to your customer for you. This means you, as a retailer, can sell a variety of products without ever having to stock any inventory whatsoever.
This makes drop shipping very appealing for new, small, home-based online businesses.
When a customer places on order for a drop shipped product online, the retailer receives the order and payment for the order, and then either automatically or manually contacts the wholesaler or manufacturer, issuing a purchase order for the item and providing instructions for shipping directly to the customer. The wholesaler or manufacturer ships the product, and the retailer earns a profit. We call this dropshipping.