# Dropshipping Model
Confidence: high
Last verified: 2026-05-22
Generation: human_only


## TL;DR

Dropshipping is a retail fulfillment method where the store doesn't keep products in stock. Instead, when a sale occurs, the store purchases the item from a third-party supplier who ships directly to the customer. The seller never handles the product — acting as a marketing and customer service layer.

## Core Explanation

Advantages: low upfront investment (no inventory), location independence, easy to test products. Disadvantages: low margins (10-30%), no quality control, shipping times (often from China, 2-4 weeks), supplier reliability issues. Success factors: product research (solving problems, not just cheap), supplier vetting, excellent customer service, brand building.

## Further Reading

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