Drop Shipping

Drop shipping is a retail method where a store doesn't keep products in stock. Instead, when a customer places an order, the store purchases the item from a third party—usually a wholesaler or manufacturer—who then ships it directly to the customer. The store acts as a middleman, marketing and selling the product without handling inventory or fulfillment.

Key points:

- Low upfront costs: No need to invest in inventory or warehousing.

- Flexibility: Sellers can offer a wide range of products without physical storage.

- Risks: Limited control over shipping times, product quality, or inventory availability.

- Profit margins: Typically lower due to reliance on third-party pricing and fees.

- Common platforms: Shopify, WooCommerce, or marketplaces like Amazon and eBay are often used to set up drop shipping businesses.

It’s popular in e-commerce, especially for entrepreneurs starting with minimal capital, but success depends on reliable suppliers and effective marketing.