A fulfilment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product. Dropshipping eliminates the need for warehousing and inventory management, streamlining the supply chain process. It allows for faster order processing and fulfillment since products can be shipped directly from the supplier to the customer. Without the need for maintaining inventory and storage facilities, dropshipping can reduce costs associated with warehousing, inventory holding, and related overhead expenses.

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Logistics 101 – Supply Chain vs Order Fulfilment: What is the Difference?