dropshipping

Vocabulary Word

Definition

Dropshipping is a business model where the retailer doesn't keep products in stock. Instead, when a customer orders a product, the retailer buys it from a third party and has it shipped directly to the customer.

Examples in Different Contexts

Dropshipping can support small businesses by enabling them to offer a diverse range of products without needing significant capital to invest in inventory, fostering entrepreneurship and innovation.

Practice Scenarios

Startup

Scenario:

Our new business needs a model that's flexible, scalable, requires relatively less investment. What's your thoughts?

Response:

We could consider dropshipping. With this model, we can start with a broad array of products without the need of heavy investment in inventory.

Tech

Scenario:

The demand for our platform has been overwhelming. We need to add more products without inflating our logistics costs. Any ideas?

Response:

Dropshipping could be a solution for us. It allows us to offer a wide range of products without expanding our physical inventory requirements.