Home > eCommerce Terms > What does Dropshipping mean?

Dropshipping at its most basic level means when some other party ships products for the seller. (and may package too)

If you are an online store that is using dropshipping suppliers, that 3rd party supplier would package and ship for you to the location you provide.

Historically, goods have been shipped from the brand or manufacturer to a distributor who aggregates goods. Then retailers can purchase goods from multiple manufacturers / brands from the distributor at once and have them all shipped at once to the retailer.

Some retailers are also now starting to use dropshipping for their online presences. They will buy from the distributor or brand and instead of having the product ever come to them, it’ll ship directly to the end customer.