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How does dropshipping work?
To break it down, here’s how the process flows:
1. You own a website with products.
2. You don’t actually hold these products, they are held by the supplier or wholesaler (who could be anywhere in the world). These products may cost $50 per unit from the supplier, while you list them at $80 each (making a profit of $30 from the sale).
3. When a customer orders a product from your website, you receive a notification. You then forward that order to the supplier, either manually or automatically.
4. The supplier fulfills the order and ships it directly to the customer under your brand’s name.