Dropshipping
Dropshipping is a model where your store sells products a supplier stocks and ships directly to the customer — with no inventory of your own.
What is dropshipping?
Dropshipping is a retail model where you sell products without stocking them yourself. When a customer orders, you pass the order to a third-party supplier who packs and ships the item directly to the customer in your name. You own the customer relationship, pricing, and marketing, while the supplier handles inventory and shipping. You typically pay the supplier only once the sale is made.
Why does dropshipping matter?
The model lowers the barrier to entry sharply, because you can open a store without tying up capital in stock or renting warehouse space. In return, your contribution margin is often thinner, since you buy single units instead of bulk at wholesale prices. Even though the supplier packs and ships, you as the retailer remain responsible for customer service, returns, and refunds — the customer only knows your store.
Common use cases
- Testing new products or niches before committing capital to your own stock.
- Extending your catalog with items you would rather not warehouse.
- Print-on-demand, where the item is produced only after the order is placed.
- Launching on a tight budget where risk needs to stay low.
Shopify perspective
Shopify permits dropshipping, and most people set it up with apps like DSers, Zendrop, or Spocket that import supplier products and automate fulfillment. Watch out for long shipping times from overseas suppliers (e.g. via AliExpress), and show realistic delivery estimates at checkout. Consider suppliers with EU warehouses for faster delivery, and read more in our guide to the best Shopify dropshipping apps.