How does dropshipping work?

No more up front inventory costs or shipping logistics. With dropshipping, products are sent directly from your wholesaler to your customers.

Step 1

Your customer places an order from your online store

Step 2

Your store automatically sends the order to your dropshipping supplier

Step 3

Your dropshipping supplier prepares your customer’s order

Step 4

Your dropshipping supplier ships the order directly to your customer

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a customer makes a purchase, the store buys the item from a third party — typically a wholesaler or manufacturer — who then ships the product directly to the customer. Here’s how it works step by step:

🔄 How Dropshipping Works:

1. Set Up an Online Store
   You (the dropshipper) create an online store and list products for sale, often using a platform like Shopify, WooCommerce, or Etsy.
2. Customer Places an Order
   A customer visits your store and places an order.
3. You Forward the Order to the Supplier
   You purchase the item from a third-party supplier (usually at a lower wholesale price) and provide them with the customer’s shipping details.
4. The Supplier Ships the Product
   The supplier packages and ships the product directly to the customer.
5. You Keep the Profit
   You earn the difference between what the customer paid and what you paid the supplier — this is your profit margin.

✅ Pros of Dropshipping:

• Low startup cost – No need to invest in inventory upfront.
• Easy to start – Minimal logistics and warehousing.
• Scalable – Easy to add new products or suppliers.

⚠️ Cons of Dropshipping:

• Low profit margins – Due to competition and supplier costs.
• Less control – Over product quality, inventory, and shipping speed.
• Customer service challenges – Returns, delays, and quality issues are harder to manage.

Common Platforms & Tools:

• Shopify + Oberlo (or similar apps)
• AliExpress for global suppliers
• Spocket, Printful, or CJ Dropshipping for faster fulfillment or print-on-demand