// ROBOTICS AND SMART FACTORIES TERM

Drop Shipping

Drop shipping is a retail fulfillment method where a store doesn't keep the products it sells in stock; instead, when a customer places an order, the store purchases the item from a third party and has it shipped directly to the customer.

TECHNICAL DEFINITION

Drop shipping is an e-commerce fulfillment model where the retailer does not physically stock inventory but instead transfers customer orders and shipment details to a third-party supplier (manufacturer or wholesaler), who then ships the goods directly to the end customer.

BACKGROUND

Drop shipping is a form of retail business in which the seller accepts customer orders without keeping stock on hand. Instead, the seller transfers the orders and their shipment details either to the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer.

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SYNONYMS & ALIASES

  • Third-party fulfillment
  • direct-to-consumer (via supplier)
  • virtual inventory
  • dropship

USAGE NOTE

Drop shipping reduces inventory risk for retailers but gives them less control over shipping and quality.

DEVELOPERS

Organizations developing technology related to Drop Shipping.

  • Shopify

    A leading e-commerce platform that provides the foundational technology for online stores. It enables drop shipping through its native features and a vast ecosystem of third-party apps, like DSers, that automate product sourcing, order fulfillment, and supplier integration.

  • DSers

    An official AliExpress e-commerce solution, DSers is a technology platform designed to automate and manage drop shipping businesses. It allows users to find suppliers, import products to their online store, and automatically place and manage large volumes of orders.

  • Spocket

    A technology platform and marketplace that connects online retailers with drop shipping suppliers, primarily from the US and Europe. Its software integrates with e-commerce platforms to automate product importing, inventory updates, and order fulfillment for faster shipping.

  • Printful

    A print-on-demand (POD) drop shipping company that provides technology for creating and selling custom products online. Its platform integrates with e-commerce stores, automatically receiving orders, printing the products, and shipping them directly to the customer.

  • Printify

    A technology platform that operates as an intermediary in the print-on-demand drop shipping market. It connects merchants with a global network of print providers, using software to automate order routing, production management, and shipping.

  • SaleHoo

    A technology company providing a research tool and online directory of vetted wholesale and drop shipping suppliers. Its platform helps e-commerce entrepreneurs find reliable suppliers and profitable products to sell online.

  • CJdropshipping

    An integrated marketplace and fulfillment platform that offers a one-stop solution for drop shippers. Its technology includes product sourcing, automated order processing, warehousing, and global shipping services, all managed through a single dashboard.

  • Modalyst

    A drop shipping automation platform, now part of Wix, that focuses on connecting retailers with a curated network of suppliers, including independent brands and designers. Its technology automates the entire drop shipping workflow from product import to order fulfillment.

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