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What is a dropshipper and why should you become one?

Posted: Mon Jan 06, 2025 6:35 am
by asimd23
A dropshipper is a seller who does not maintain an inventory of products of their own, but instead receives orders from buyers and transfers them directly to the manufacturer or supplier, who is responsible for sending the products to the end customer.

Within the e-commerce space, dropshipping has become one of the preferred options for those looking to start a business with little investment. Currently, a study showed that 33% of online stores use some variation of this model to do business.

This has caused the term ' dropshipper ' to become part of the usual vocabulary of e-commerce and must be explained to those looking to start an online store without the need to have physical stock .

In this article, you will learn in detail the number data term dropshipper, what it is , as well as the advantages and disadvantages of becoming one, so that you can decide if this path is the best option for you.

What is a dropshipper?
Within the dropshipping business model, a dropshipper is a merchant who receives orders from his customers in his online store and transfers them directly to a supplier who is responsible for sending the merchandise to the buyer.

There is sometimes confusion about who should be called a dropshipper within this business model: is it the name given to the seller who uses this way of selling or should we call it the wholesaler who supplies this type of orders? Although it may seem somewhat complex, the reality is that it is something very simple to understand.

For this reason, we now present you with several definitions to find the common elements, so that you do not have any doubts.

Encyclopedia definition of dropshipper
The English language reference encyclopedia Britannica speaks of the original use of ' drop shipper ' this way:

They are merchants who do not hold inventory or deliver the merchandise. Operating primarily in bulk industries such as lumber, coal and heavy machinery, they take orders but have their manufacturers ship the merchandise directly to end consumers.”
Definition of dropshipper from a business perspective
Forbes , a business publication, explains how the model works and the role of each part as follows:

The consumer pays the dropshipper . The dropshipper pays the manufacturer or distributor. The manufacturer or distributor ships the product to the customer. Essentially, the dropshipper is a marketer.