GlossaryFulfillment

Dropshipping

A fulfillment model where the seller does not hold stock and a supplier ships orders directly to customers.

In dropshipping, a retailer lists and sells products but does not keep them in inventory. When an order comes in, it is passed to a supplier or manufacturer, who ships it directly to the customer.

The model lowers upfront inventory costs but gives the seller less control over packaging, delivery speed and quality. When suppliers ship from outside the destination country, customs, duties and longer transit times become part of the customer experience.

Learn more in our Cross-border shipping articles.

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