NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By Rohit Jaiswal

Dropshipping is a retail fulfillment model that allows b to outsource the procurement, storage, and shipping of goods to a third-party supplier, such as a wholesaler or manufacturer. The business owner simply creates a website, lists products for sale, and accepts payments. When a customer makes a purchase, the business owner notifies the supplier, who then ships the product directly to the customer.

Photo courtesy of Colleen.