What is Dropshipping?

Much like us, many smaller online retail businesses utilize a process called "dropshipping".  Many people have asked, "what is dropshipping"? Today I am going to share with you what it means to utilize dropshipping for your online retail store. 

Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.

The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn't stock or own inventory. Instead, the merchant purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders.

Once your order is placed the supplier "fulfills" your order and "ships" it to you directly. 

Typically once the item is received by the customer, any concerns with the item should be addressed with the merchant, not the supplier.  Meaning, if you receive an item that is defective you should reach out to the store you purchased it from, not the supplier that sent it to you.  The reason for this is because although the item was essentially sent from the supplier, the item was purchased and ordered through the merchant, therefore, the merchant will be the point of contact for addressing your concerns, issuing refunds or requesting a new item be sent. 

The process is fairly simple and the benefit for the customer is that the merchant is more likely to address your concerns more effectively since essentially it is their name on the line, not the suppliers. 

I hope this information is valuable. 

Have a wonderful day. 

Until next time. 

Zane E. Redfern 

 

 

 


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