Dropshipping

Dropshipping is a business model in e-commerce in which an online store sells products without storing them itself. Instead, the retailer forwards the orders directly to a supplier or manufacturer, who ships the goods directly to the end customer. The store operator merely handles the marketing and sale of the products, while the supplier takes care of shipping.

Dropshipping is particularly relevant in the context of warehouse management, as the retailer does not keep its own stocks and does not incur any warehousing costs. However, a successful dropshipping strategy requires effective systems for order processing, inventory control and shipment processing, as the retailer relies on suppliers to work reliably and quickly. Smooth warehouse management at the supplier is crucial to ensure delivery times and quality. A good warehouse management system minimizes errors and delays that could otherwise lead to dissatisfied customers.