---
id: kb-2026-00212
title: Dropshipping Model
schema_type: Article
category: business
language: en
confidence: medium
last_verified: '2026-05-28'
created_date: '2026-05-22'
generation_method: human_only
derived_from_human_seed: true
conflict_of_interest: none_declared
is_live_document: false
data_period: static
atomic_facts:
  - id: fact-business-dropshipping-model-1
    statement: >-
      Shopify Help Center describes dropshipping as selling products without storing inventory or
      shipping products yourself.
    source_title: 'Shopify Help Center: What Is Dropshipping?'
    source_url: https://help.shopify.com/en/manual/products/dropshipping/what-is-dropshipping
    confidence: medium
  - id: fact-business-dropshipping-model-2
    statement: >-
      Amazon dropshipping policy requires the seller to be the seller of record and identify itself
      as the seller on packing slips, invoices, and related information.
    source_title: 'Amazon Seller Central: Dropshipping Policy'
    source_url: https://sellercentral.amazon.com/help/hub/reference/G201808410
    confidence: medium
  - id: fact-business-dropshipping-model-3
    statement: >-
      FTC guidance for mail, internet, or telephone orders says sellers that cannot ship by the
      stated time, or within 30 days if no time is stated, must seek customer consent for the delay.
    source_title: FTC Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule
    source_url: >-
      https://www.ftc.gov/business-guidance/resources/business-guide-ftcs-mail-internet-or-telephone-order-merchandise-rule
    confidence: medium
completeness: 0.82
known_gaps:
  - Specialized edge cases and implementation details are outside this source-mapped public slice.
disputed_statements: []
primary_sources:
  - title: 'Shopify Help Center: What Is Dropshipping?'
    type: platform_documentation
    year: 2026
    url: https://help.shopify.com/en/manual/products/dropshipping/what-is-dropshipping
    institution: Shopify
  - title: 'Amazon Seller Central: Dropshipping Policy'
    type: marketplace_policy
    year: 2026
    url: https://sellercentral.amazon.com/help/hub/reference/G201808410
    institution: Amazon
  - title: FTC Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule
    type: regulatory_guidance
    year: 2026
    url: >-
      https://www.ftc.gov/business-guidance/resources/business-guide-ftcs-mail-internet-or-telephone-order-merchandise-rule
    institution: Federal Trade Commission
secondary_sources: []
updated: '2026-05-28'
ai_models:
  - claude-opus
---

## TL;DR

Dropshipping is a retail fulfillment model in which a seller markets products while another supplier stores and ships the goods.

## Core Explanation

The model is operationally simple but compliance-sensitive: sellers still own the customer promise even when a third-party supplier ships the item.

## Source-Mapped Facts

- Shopify Help Center describes dropshipping as selling products without storing inventory or shipping products yourself. ([source](https://help.shopify.com/en/manual/products/dropshipping/what-is-dropshipping))
- Amazon dropshipping policy requires the seller to be the seller of record and identify itself as the seller on packing slips, invoices, and related information. ([source](https://sellercentral.amazon.com/help/hub/reference/G201808410))
- FTC guidance for mail, internet, or telephone orders says sellers that cannot ship by the stated time, or within 30 days if no time is stated, must seek customer consent for the delay. ([source](https://www.ftc.gov/business-guidance/resources/business-guide-ftcs-mail-internet-or-telephone-order-merchandise-rule))

## Further Reading

- [Shopify Help Center: What Is Dropshipping?](https://help.shopify.com/en/manual/products/dropshipping/what-is-dropshipping)
- [Amazon Seller Central: Dropshipping Policy](https://sellercentral.amazon.com/help/hub/reference/G201808410)
- [FTC Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule](https://www.ftc.gov/business-guidance/resources/business-guide-ftcs-mail-internet-or-telephone-order-merchandise-rule)