Dropshipping

Dropshipping lets you sell products without holding stock: when you receive an order, you pass it to the supplier, who ships directly to your customer.

What is dropshipping?

Contrary to a common misconception, dropshipping is not a business model in itself but a fulfilment model. It means most costs are variable, so you can start a business with a relatively small initial investment.

The process is straightforward: a customer buys from your online shop, the supplier receives the order and dispatches the product. The parcel usually arrives in unbranded packaging, so from the customer's perspective you remain the seller. In practice, you act as the intermediary between customer and supplier without purchasing stock in advance.

A practical example

Imagine running SportShop, an online sporting goods store, and wanting to sell running shoes without buying them upfront.

1. Catalogue: you list the supplier's shoes on your website with descriptions, photographs and prices.
2. Order: a customer buys a pair of shoes for €100.
3. Forwarding: the order goes to the supplier, whom you pay the wholesale price, for example €70.
4. Shipping: the supplier prepares the parcel and sends it straight to the customer, potentially using your branding if that service is available.
5. Tracking: you receive a tracking number and share it with the customer.

The advantages

• Lower costs and risks: you do not need to purchase stock in advance.
• Simpler logistics: no warehouse or shipping operations to manage.
• Flexibility: add or remove products from your catalogue at any time.

Which platform should you use?

As this is a fulfilment model, the same considerations apply as for any e-commerce business:

• Small shop (up to approximately 1,000 products): WooCommerce.
• Medium-sized shop (up to approximately 20,000 products): PrestaShop.
• Medium to large shop, including international sales: Magento.