[{"@context":"http:\/\/schema.org","@type":"BlogPosting","about":"http:\/\/www.wikidata.org\/entity\/Q1542702","name":"What is dropshipping? Definition, examples, benefits","headline":"What is dropshipping? Definition, examples, benefits","description":"Dropshipping is a retail model where a company sells products and fulfills orders by buying items from a third party that ships them directly to the customer. Learn dropshipping benefits, strategies and examples.","datePublished":"2021-05-25T05:02:00Z","dateModified":"2021-05-26T14:39:00Z","image":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/DropShip_1200x375-1200x630.jpg","height":"630","width":"1200","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/DropShip_1200x375-1200x630.jpg"},"author":{"@type":"Person","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/sharon-goldman\/","name":"Sharon Goldman","sameAs":["https:\/\/twitter.com\/sharongoldman","https:\/\/www.linkedin.com\/in\/sharongoldman\/"],"@id":"https:\/\/www.the-future-of-commerce.com\/2020\/12\/30\/2021-cpg-retail-trends-that-will-define-the-industry-in-2021\/#Person"},"hasPart":{"@type":"FAQPage","name":"What is dropshipping?","mainEntity":[{"@type":"Question","name":"What is dropshipping?","acceptedAnswer":{"@type":"Answer","text":"Dropshipping is a retail fulfillment model where the store doesn\u2019t actually have any products in stock. That\u2019s right: Unlike a traditional retailer, with dropshipping there is no inventory to purchase, no packages to send, no warehouse to maintain.  Instead, a dropshipper sells products and fulfills orders by buying items from a third party that ships them directly to the customer. Shoppers place orders through the dropshipper\u2019s e-commerce website, which are then routed to the third-party manufacturer, distributor or wholesaler who packs and ships.","name":"What is dropshipping? Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/#Answer"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/#Question"},{"@type":"Question","name":"The biggest benefits of dropshipping","acceptedAnswer":{"@type":"Answer","text":"<ol class=\"nitro-offscreen\"> <li><strong>Dropshipping is a low-cost model.<\/strong> You can sell thousands of items, but you don\u2019t have to spend any money until you receive customer payment. In addition to saving money on purchasing inventory, dropshippers do not need to invest in storage or rent.<\/li> <li><strong>It\u2019s easy to get started. <\/strong>Since products are handled by outside suppliers, it\u2019s easy to go from zero to 60 with a dropshipping model. No product development, no storing inventory, just selling.<\/li> <li><strong>Flexible expansion.<\/strong> Expanding an online store is as simple as adding new brands, sizes and color options to the website. Testing new products is also a snap; if one product doesn\u2019t sell, it can be removed and replaced with another.<\/li> <\/ol>","name":"The biggest benefits of dropshipping Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/#Answer1"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/#Question1"},{"@type":"Question","name":"Top dropshipping challenges","acceptedAnswer":{"@type":"Answer","name":"Top dropshipping challenges Answer","text":"<ol class=\"nitro-offscreen\"> <li><strong>Loss of control. <\/strong>While a dropshipping business doesn\u2019t keep inventory on hand, it\u2019s fully dependent on third-party distributors or wholesalers following through on orders. If not, customers will complain to the business they ordered from.<\/li> <li><strong>Building a brand and product website can be time-consuming. <\/strong>Dropshipping doesn\u2019t mean selling is a snooze. Creating a successful business means building an attractive online store brand and all the landing pages, product descriptions, taglines and links that make a professional e-commerce site stand out.<\/li> <li><strong>Competition is fierce.<\/strong> Dropshipping may have low overhead, but competition is also sky-high. Dropshippers don\u2019t have exclusive contracts with suppliers, so it can be tough to keep prices low, while choosing the right product niche can be a challenge.<\/li> <\/ol>","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/#Answer2"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/#Question2"}],"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/#FAQPage1"},"publisher":{"@type":"Organization","logo":{"@type":"ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","width":"500","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1"},"url":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","name":"The Future of Customer Engagement and Experience","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","sameAs":["https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/www.the-future-of-commerce.com\/feed\/"],"@id":"https:\/\/www.the-future-of-commerce.com\/"},"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/25\/what-is-dropshipping\/"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"05","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"25","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/\/25\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"What is dropshipping? 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