Business models
What is dropshipping?
Dropshipping is a way to run a store without holding inventory: you sell the product, and a supplier ships it straight to the customer.
Getting dropshipping right
Choose suppliers on shipping time
Slow delivery is the most common complaint. Order samples and time the delivery yourself.
Sell something worth choosing you for
Many stores sell the same items. A clear niche, better photos and real answers on the page set yours apart.
Price for ads and returns
Thin margins disappear fast. Make sure each order covers ad cost, fees and the occasional refund.
Ask Replo: "build a store for my phone accessories".
Dropshipping questions
- Is dropshipping still profitable?
- It can be, but margins are thin and competition is high, because anyone can list the same product. Stores that last usually pick a narrow niche, build a brand and move to holding their own stock once products prove out.
- What's the difference between dropshipping and print on demand?
- Both ship from a supplier without you holding stock. Print on demand makes each item after the order with your design on it; dropshipping usually sells ready-made products from a supplier's catalog.
- Do I need a business license to dropship?
- Rules vary by country and state, but most places require you to register the business and collect sales tax where it applies. Check your local requirements before you start selling.
Related terms
Browse the glossaryPrint on demand
Print on demand is selling custom-printed products, like shirts or mugs, that a partner prints and ships only after each order comes in.
Private label
Private label is selling a product made by a manufacturer under your own brand name, often with your own packaging or formula.
DTC
DTC (direct to consumer) is a brand selling straight to shoppers through its own site instead of through retailers or wholesalers.
3PL
A 3PL (third-party logistics provider) stores your inventory and picks, packs and ships your orders for a fee.