What Is A Dropshipping Business?

A dropshipping business involves selling items online without ever having the inventory in your possession or even in the possession of your company. Many sellers on Shopify and other eCommerce platforms are drop shippers, though not all are.

What is dropshipping business? Here’s an example of how a dropshipping business might operate: You find a dealer that offers product A for $10. You create a website, marketing product A for $15. When people buy from you, you order the products from your dealer and have them ship it to the person in question. You make around $5 profit from the order.

To your customer, the product appears to come from your company. Your dealer may even put labels on the shipping boxes that indicate the purchase was from you. Dropshipping is completely legal and is a way to start an online business if you don’t have the capital to invest in inventory.