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Dropshipping — A retail method where a store sells products without holding any inventory, and the supplier ships each order directly to the customer.
What Is Dropshipping?
You set up an online store, list products from a supplier’s catalog, and set your own sale price. When a customer buys, you forward the order and pay the supplier’s price. The supplier packs and ships the item straight to the customer, so you never touch the product yourself.
How Dropshipping Works
- A customer places an order and pays your store price.
- You forward that order — and the supplier’s cost — to the supplier.
- The supplier packs and ships the product to the customer’s address.
- You keep the difference between what the customer paid and what you paid the supplier.
Dropshipping vs. Traditional Retail
| Dropshipping | Traditional Retail | |
|---|---|---|
| Inventory | None held by you | Bought and stored upfront |
| Upfront cost | Low — mainly store setup | High — inventory purchase |
| Order fulfillment | Handled by supplier | Handled by you |
| Profit per sale | Lower per item, less risk | Higher per item, more risk |
Why Dropshipping Matters
If a supplier sells a phone case for $6 and you list it for $19.99, you keep about $14 before ad spend, payment fees, and platform costs. Dropshipping is the foundation every AliDropship store is built on — it’s what makes it possible to launch without a warehouse or a large upfront investment.
FAQ
Is dropshipping still profitable in 2026?
It can be, but margins are thinner than they used to be because of rising ad costs. Profitability now depends more on niche selection and marketing efficiency than on the model itself.
Do I need a business license to start dropshipping?
Requirements vary by country and state. Many sellers start as a sole proprietor and formalize later, but it’s worth checking local rules before you scale.
How long does dropshipping shipping usually take?
It depends on the supplier and destination — anywhere from a few days for local warehouses to two or three weeks for international shipping.