What is dropshipping and how does it work?
In: 4
Not a lot of ELI5 here.
Drop shipping is selling a product you don’t keep on hand in a warehouse. It goes straight to the buyer without you receiving or touching it.
For the how it works, my company pays the manufacturer a set amount to deliver it for us, say $5 per widget.
We need to sell a certain amount of widgets in a geographic area to pay for an employee, and if there isn’t enough sales then it’s cheaper to drop ship the item.
There are some complex explanations here for a very simple concept ( like /u/Olly0206 mentioned.)
Drop shipping has been around long before the internet so don’t get hung up on those examples (they are good examples, but just complicate the understanding).
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