Dropshipping is a business model wherein the retailers don’t stock the products they sell. Instead, they transfer the products to the end-customers directly from the manufacturers / suppliers / wholesalers without even seeing or handling the products, in real, they are selling.
Dropshippers are those manufacturers / suppliers / wholesalers who fulfill the order and deliver the products to the end-customers on the request from the retailers.
You pick a good dropshipper— let’s say a company that dropship apparels. You Sign up to their Dropshipping program. You purchase from their large women and men apparels collection your own e-stock. Whether selling on eBay, Amazon or on your own website, you easily integrate your bought clothing wholesale on your store (s) through API integration. And you start selling.
Your dropshipper takes care of your inventory in its own warehousing facility. When your customers place an order, you inform your dropshipper about it via a centralized platform. Your dropshipper fulfills your order on your behalf— packing, labeling and delivering the products to your customers.
You keep the revenue and cut any desired profit margin.
It depends from dropshipper to dropshipper the amount of fee you’re paying for their services. The top ones charge marginally. So before you apply for any Dropshipping program, understand their policies and pricing. However, with full leeway to cut any desired profit margin, the chances for low return are little.