What does a dropshipper do?

 

A dropshipper is a retailer who sells products to customers without holding any inventory. Instead of stocking items, a dropshipper partners with suppliers or manufacturers who manage inventory and shipping. Here’s how the process typically works:

1. Product Selection: The dropshipper selects and lists products from suppliers on their online store, often at a marked-up price.

2. Customer Orders: When a customer purchases a product from the dropshipper's store, the dropshipper processes the order.

3. Supplier Fulfillment: Instead of the dropshipper shipping the product themselves, they forward the order details to the supplier, who then packages and ships the product directly to the customer.

4. Payment Handling: The dropshipper collects the payment from the customer and usually pays the supplier a wholesale price for the product, keeping the difference as profit.

5. Customer Service: The dropshipper is responsible for customer service, handling inquiries, returns, and other issues related to the sale.

The dropshipping model allows entrepreneurs to start a business with lower upfront costs since they do not need to invest in inventory or warehouse space, but it also comes with challenges like managing supplier relationships, ensuring product quality, and dealing with shipping times.