Service
Drop shipping is a retail business model where a seller sells products online without keeping them in stock.
How it works
When a customer places an order, the seller forwards the order to a third party — like a manufacturer, wholesaler, or fulfillment house (us!) — who ships directly to the customer.
Benefits
Drop shipping is appealing to entrepreneurs because it requires little initial investment and overhead. It also lets sellers offer a wide variety of products without managing storage or buying stock upfront.
Drawbacks to be aware of
- Lower profit margins — sellers may charge more to act as a middleman, so margins can compress.
- Less control — quality, storage, inventory management, and shipping are all delegated.
- Customer experience — shipping delays, supply-chain hiccups, and customer-support questions can be harder to absorb.
The right fulfillment partner closes most of those gaps. Our cloud overseas warehouse system gives sellers full visibility into stock and order status, and our SLAs are designed for marketplace-grade timeliness.