What is dropshipping?


Dropshipping is an upcoming catchy new business phrase... But what is the definition of Drop shipping exactly?

What is the Definition of drop shipping:

"Dropshipping is a retail fulfillment method in which an (online) webshop (the actual 'Dropshipper') does not keep products in stock, but instead directly transfers the received customer orders and shipment details to the manufacturer, retailer or wholesaler, who then ships the products directly to the Customer ” 

In other words: Drop shipping is when an online retail store sells a product, then it purchases the item directly from the manufacturer/wholesaler or third-party an entity like Taobao or Amazon. Often this is done without proper contracts, but it’s a trend to improve this, in order to make sure you keep the price the same, agree on legal consequences, returns, and reimbursements. The manufacturer/wholesaler/third-party then ships the order on your behalf directly to the end-customer who made the original purchase.


Learn more about how to set up your own Drop Shipping strategy:

template preview imageDrop Shipping Strategy Model

Drop Shipping Strategy Model

Check out this Drop Shipping Strategy Model template and make your own Drop Shipping Business model working for you!

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Learn how to plan your next steps:

template preview imageDrop Shipping Planning Gantt Chart

Drop Shipping Planning Gantt Chart

Do you want to start with Dropshipping but no idea how to start? Are you looking for useful planning to start Drop Shipping? Then this is a free planner for you

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Check out an extensive Drop Shipping Toolkit:

template preview imageDrop Shipping Toolkit

Drop Shipping Toolkit

Are you a Drop Shipper looking for useful documents and contracts to improve your business?Check out this unique Drop Shipping Toolkit and enhance your buzz!

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Beware of making yourself liable for legal problems as a drop shipper:

template preview imageDrop Shipping Agreement Template

Drop Shipping Agreement Template

Always work with this Drop Shipping Agreement template when you start Drop shipping! Discuss with your Supplier and download this Dropship Agreement now!

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Bilingual Chinese and English Drop shipping agreement with Chinese factory: 

template preview imageDropshipping Agreement with factory in China

Dropshipping Agreement with factory in China

Are you looking for a bilingual Drop Shipping Agreement template in Chinese and English language? Download this Chinese-English Drop shipping agreement now!

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Drop shipping supplier warranty example sheet: 

template preview imageDrop Shipping Supplier Warranty

Drop Shipping Supplier Warranty

What is mentioned in a Supplier Warranty for Drop Shipping Supplier? What is written in a Drop Shipping Warranty Clause? Download this Drop Shipping Supplier Warranty template now!

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Protect future sales to old customers with this Drop shipping CDA :

template preview imageConfidentiality Agreement Drop Shipping Retailer

Confidentiality Agreement Drop Shipping Retailer

Are you looking for a Drop Shipping Confidentiality Agreement (CDA) that you can sign with your Supplier? Download the Confidential Disclosure Agreement Template!

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Derek Coleman Derek Coleman

Far and away the best prize that life offers is the chance to work hard at work worth doing. | Theodore Roosevelt