Dropshipping is a fulfilment model in which the seller accepts the customer order without holding the corresponding inventory. A supplier or fulfilment partner ships the product directly to the customer on the seller’s instructions.
Control the customer promise
The seller still needs reliable stock data, dispatch times, tracking, packaging standards and a returns process. The customer sees the seller’s brand, even when another party performs the shipment.
| Area | What to establish |
|---|---|
| Availability | Stock feed, reservation and oversell rules |
| Dispatch | Cut-off, handling time, carrier and tracking |
| Customer experience | Packing slip, branding and communication |
| Exceptions | Cancellation, return, replacement and refund ownership |
Where the model breaks
Margins can narrow when the supplier charges per order and the seller pays for acquisition, payment acceptance, support and returns. Product quality and delivery failures also reach the customer before the seller can inspect the goods.
Related terms
ecommerce supplier, ecommerce fulfilment, third-party logistics, inventory planning.
