But first let us define what it means to drop-ship!
Shopify defines Drop-shipping as a retail fulfillment 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. As a result, the merchant never sees or handles the product.
So now that we read the definition let's break it down a little more. Drop-shipping is way more common than its mentioned or realized. For example, if your best-friend were to make the most amazing cupcakes ever so you tell everyone in your family and you get 10 family members to give you $20 each per dozen. Your best-friend requests 50% of the $200 for her to bake them and deliver them to the those who ordered. All you had to do was take the orders, collect electronic payments and send your best-friend $100. You keep $100 and your best-friend bakes the cupcakes and delivers them. Makes sense? It's not complicated and can be done in many ways to fit your needs.
The third party in the above example is your best-friend. The merchant is you! You can sell anything and have it drop-shipped. It's all in the relationship and terms you set up with the third party.
Drop-shipping is popular because it saves time and money. The time you would have to spend getting the cupcakes then delivering them yourself is saved by having them come straight from baker to customer. Those cupcakes need to be as fresh as possible so this method helps make that happen. You also save gas and expenses trying to get to each family member.
So again, drop-shipping isn't a new or unheard of method of doing business. Its not for all business models and some prefer to handle their inventory in a more traditional manner for many reasons. Personally I think drop-shipping is amazing and will continue to include it in my business.
If you're looking to get started with drop-shipping go grab the complete guide -