Dropshipping is an order fulfillment method that does not require a business to keep products in stock. Instead, the store sells the product, and passes on the sales order to a third-party supplier, who then ships the order to the customer.
In general, most dropshippers are like middle man, they fulfill the client needs for the product and they actually buy the product from the manufacturer or some other suplier. Where is the catch? Dropshipper makes profit by buying lower and selling higher. Someone may say, that it is not fair, but most buyers don’t care. They are satisfied because they receive the product by the price they agreed to pay and most suppliers are happy because.. they made a sale. And, of course, our dropshipper – middle man is also happy, if some profit is being made.
I would say – it is a WIN WIN WIN kind of a business!
Want to find out more? Read, how much money can you make dropshipping!