Vendor Guide
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Dropshipping
What Is Dropshipping & How It Works
A complete introduction to the dropshipping business model and how it works on our platform.
What Is Dropshipping & How It Works
Dropshipping is a modern retail fulfillment method that allows you to sell products without ever holding physical inventory. When a customer places an order in your store, you purchase the item from a third-party supplier who ships it directly to the customer. You never see or handle the product — your role is to market it, set the price, and manage the customer relationship.
Why Choose Dropshipping?
- Zero Upfront Inventory Cost — You don't buy products until a customer has already paid you. There's no risk of unsold stock sitting in a warehouse.
- Wide Product Selection — Access millions of products from global suppliers like AliExpress and CJDropshipping without committing to bulk purchases.
- Low Barrier to Entry — Start selling immediately without warehousing, packaging, or shipping logistics.
- Location Independent — Run your business from anywhere with an internet connection.
- Scalable — Adding new products takes minutes, not weeks. Scale your catalog as fast as you want.
How It Works — Step by Step
- Browse & Import — Search for products on AliExpress or CJDropshipping directly from your Dropshipping Hub. When you find a winning product, click Import to add it to your store.
- Set Your Price — You set the retail price that customers see. The difference between your price and the supplier's cost is your gross profit.
- Customer Orders — A buyer discovers your product and places an order, paying via credit card or PayPal.
- You Fulfill via Supplier — You receive the order with the customer's shipping address. Go to the supplier's website and order the product, entering the customer's address as the delivery destination.
- Supplier Ships Directly — The supplier packages and ships the product straight to your customer. You add the tracking number to the order.
- You Earn the Difference — Once delivered, your earnings (selling price minus supplier cost minus platform commission) become available for payout.
Profit Example
Here's a real-world example of how dropshipping profit works:
- Customer pays you: €24.99
- You pay the supplier: -€8.50
- Platform commission (10%): -€2.50
- Your net profit: €13.99
Tip: The key to successful dropshipping is choosing the right products and setting competitive yet profitable prices. Aim for a 2x–3x markup over the supplier price to maintain healthy margins after commission.
Note: Cash on Delivery is automatically disabled for dropshipping products because you need the customer's payment upfront to place the order with the supplier.
