Drop shipping is an ecommerce fulfilment model where a seller takes customer orders but does not keep the products in stock. Instead, the seller sends the order details to a supplier, manufacturer, or distributor, who ships the product directly to the customer. The seller manages the storefront, pricing, marketing, and customer relationship, while the supplier handles inventory and fulfilment. Drop shipping can reduce upfront inventory costs, but it requires strong supplier coordination, accurate stock visibility, and clear delivery expectations.
- The seller never physically handles the goods
- The supplier or manufacturer ships on behalf of the seller to the end customer
- Documents may be structured as a blind shipment to conceal the supplier from the customer
- Common in e-commerce, wholesale, and B2B distribution
For international drop shipping, export compliance and customs documentation must be carefully managed.
Related terms: Double Blind Shipment, Warehousing Services, B2B Fulfillment.
