Lapasar
Sourcing & Suppliers

Drop Shipping

Drop shipping is a fulfilment model where a seller passes orders to a supplier who ships goods directly to the end customer.

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In drop shipping, the seller does not hold the stock it sells; when an order comes in, the supplier or manufacturer ships it directly to the customer. This removes the need to carry inventory or run a warehouse, lowering upfront cost and risk. It is widely used in retail and e-commerce and can extend a seller's range without investing in stock.

The trade-off is less control over inventory accuracy, delivery times, packaging and the customer experience, since fulfilment sits with the supplier. Margins can be thinner and stockouts harder to manage. In B2B procurement, drop shipping can shorten the delivery chain by sending goods straight from supplier to the requesting site rather than routing them through a central store.

Frequently asked questions

What is drop shipping?
Drop shipping is a fulfilment model where a seller passes customer orders to a supplier who ships the goods directly to the end customer, so the seller holds no stock itself.
What are the drawbacks of drop shipping?
Less control over inventory accuracy, delivery times, packaging and the customer experience, along with potentially thinner margins and dependence on the supplier's reliability.

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