How Dropshipping Works | Jifftech | Shopify Expert

Dropshipping is a business model where a retailer (the dropshipper) doesn't keep the products it sells in stock. Instead, when a customer places an order, the dropshipper purchases the item from a third-party supplier who then ships the product directly to the customer.

Here's how it works:

The dropshipper sets up an online store or marketplace listing the products they want to sell.

When a customer places an order, the dropshipper purchases the product from a supplier at a lower price than they sell it for.

The supplier then ships the product directly to the customer, usually under the dropshipper's branding.

The dropshipper keeps the difference between the price they sold the product for and the price they paid the supplier, minus any fees or expenses.

Some of the advantages of dropshipping include the ability to start a business with minimal upfront costs, as the dropshipper doesn't need to purchase inventory in advance. Dropshipping also allows for flexibility in terms of the products that can be offered and the ability to test new products and markets without significant financial risk. However, it can also be challenging to find reliable suppliers and ensure consistent product quality and shipping times.