How does dropshipping work?

With this basic definition in mind, let’s break down how dropshipping works in a little more detail.

Overall, there are three parties involved in the dropshipping business model of ecommerce—you, the retailer, the customer, and the supplier or manufacturer.

The dropshipping process, therefore, can be summed up like this:

  • A customer buys a product on your ecommerce website.

  • You send the order information to your dropship supplier.

  • The supplier picks, packs, and ships the product directly to the customer.