What is dropshipping?
Dropshipping is a fulfilment model where a retailer does not hold inventory. Instead, products are purchased from a supplier after a customer places an order and shipped directly to the customer.
How does dropshipping work?
The retailer lists products online. When a sale is made, the supplier handles storage, packaging, and shipping.
Why do businesses use dropshipping?
It reduces upfront investment and eliminates the need for warehousing.
What are the risks of dropshipping?
Lower margins, limited control over product quality, and dependence on suppliers.
Is dropshipping scalable?
Yes, though scaling requires strong supplier relationships and efficient order management.