What is dropshipping and how does it work?

Dropshipping is a type of e-commerce business model in which the retailer does not keep goods in stock, but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. This means that the retailer does not have to handle the goods or manage inventory, and can instead focus on marketing and selling the products to customers.

Here is how dropshipping works:

1. The customer places an order on the retailer’s online store.
2. The retailer forwards the order and shipment details to the supplier.
3. The supplier ships the goods directly to the customer.
4. The retailer receives payment from the customer, minus a commission or fee charged by the supplier.

In this model, the retailer acts as a middleman between the customer and the supplier, and does not have to worry about handling the goods or managing inventory. This allows the retailer to focus on promoting and selling the products, while the supplier handles the fulfillment and shipping.