Dropshipping
Online retail model where the merchant takes orders and the supplier ships directly to the end customer without the merchant holding stock.
Also known as: Drop Shipping, Direct Shipping
In dropshipping a merchant sells goods without holding them in stock. The order is placed in the merchant's shop, forwarded to the supplier and then picked and shipped from there. The end customer receives the parcel directly from the supplier, often even with the merchant's shipping brand. Benefits include low stock risk and quick range changes; drawbacks lie in margin and quality control.
How dropshipping works technically
In the shop system the merchant lists products that are sourced from the supplier. Orders are passed to the supplier automatically through interfaces such as API, EDI or CSV export. The supplier feeds back stock levels, shipping data and tracking information into the shop. Payment usually goes through the merchant, while invoicing can be handled in different ways.
What to watch for
Reliable suppliers, clear contracts and a clean returns concept are critical. Long delivery times, faulty stock data or sloppy packaging hit reviews immediately. There are also legal pitfalls, especially around warranty, right of withdrawal and import duties. Anyone selling within the EU is the customer's contractual partner and is liable for delivery even when a third party ships.
In day to day marketing
Marketing for dropshipping shops is dominated by performance marketing across social platforms, Google Shopping and email. A believable brand matters, because the model is often associated with shady operators. Honest product photos, realistic delivery times, transparent contact options and a maintained reviews profile form the foundation for sustained growth. In email, trigger sequences for order confirmation, shipping and post-purchase work especially well.