Dropshipping (sometimes written "drop shipping") is the term given to the practice of selling another supplier's goods online without actually keeping any of them in stock.
These days it is relatively easy and very cheap to produce a website which has all the characteristics of a supplier's site. However it is often the case that the "company" fronting the website is a small or even sole trader, operating from home with a laptop and a £6-a-month web domain.
The dropshipper will have an arrangement with the true supplier in which any orders are passed on for delivery, keeping just a percentage of the sale price as commission. This arrangement suits the real supplier as the product will be advertised to new audiences, creating an impression of choice from a wider range of providers when all products are in fact the supplier's own.
Many small entrepreneurs are attracted to dropshipping because it is easy to do with a cursory knowledge of web building, and requires only negligible outlay.
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