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

Imagine you have an online store selling art supplies. With dropshipping, you can offer a wide variety of products without needing a large space to store them all, as the products are shipped directly from the supplier to the customer.

Practice Scenarios

Marketing

Scenario:

We need to explore unique product offerings for our clients without investing too much in new inventories. Do you have any suggestions?

Response:

Perhaps we should consider a dropshipping arrangement. That way, we could offer a wider product range without major investments in inventories.

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.