Drop shipping

Drop shipping is a retail business model in which the retailer does not hold any of the products that they sell in stock. Instead, the supplier coordinates the flow of orders from point of sale to point of delivery by passing them along to the manufacturer, wholesaler, additional retailer, or fulfilment centre. The seller is in charge of sales and promotion but has little involvement in manufacturing, stocking, and distribution. This removes the need for a physical storefront, as well as the associated overhead expenditures associated with a warehouse, stock, and employees. The seller's profit in dropshipping is the difference between the wholesale price and the retail price of an item, minus any applicable selling, merchant, or shipping costs.