Dropshipping
Category: E-commerce
Also searched as: Drop shipping
Definition (plain English)
A fulfillment model where the seller takes the order but a supplier or third party ships directly to the customer.
Why it matters commercially
Dropshipping can reduce inventory investment but weakens control over stock accuracy, packaging, service level, customs responsibility, returns, and customer experience.
Example
A brand stopped dropshipping imported food hampers after supplier stock-outs and label mismatches created refunds the seller had to absorb.
Common mistake
Assuming no-inventory means no risk, while ignoring supplier reliability, delivery evidence, returns ownership, VAT/tax treatment, and product compliance.
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