Definition
Dropshipping is a retail fulfilment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. The seller never sees or handles the product.
Why it matters (in Poovi’s context)
It’s presented as a low-barrier-to-entry business model ideal for beginners using mobile, as it requires minimal upfront investment and inventory management.
Key properties or components
- No inventory required
- Low start-up costs
- Fulfilled by third-party suppliers
- Focus on marketing and sales
Contradictions or debates
While often promoted as ‘zero cost’, there are typically costs associated with marketing, website fees (after trials), and potentially sample products.