DS - Dropshipping

Definition updated on November 2023

What is DS (Dropshipping) and how does it function in e-commerce supply chains?

Refers to a retail fulfillment method where a store or seller doesn't keep the products it sells in stock. Instead, when a seller using the dropshipping model sells a product, they purchase the item from a third party and have it shipped directly to the customer. This means the seller never physically handles or sees the product. For sneaker resellers, dropshipping can be a strategic business model. They can showcase a wide variety of sneakers on their online platform without investing in inventory upfront. When a customer places an order, the reseller then buys the sneaker from a supplier, often at a wholesale price, and arranges for it to be shipped directly to the customer. The primary advantage is the reduced financial risk, as resellers don't need to buy bulk inventory. However, there are challenges, like ensuring product quality and authenticity since the reseller never physically inspects the sneakers. Additionally, shipping times might be longer if the third-party supplier is international. Sneaker enthusiasts can sometimes be skeptical about dropshipped products due to concerns about receiving counterfeit items. Therefore, building trust and maintaining a reputation for delivering authentic sneakers is crucial for resellers using the dropshipping model. In essence, dropshipping offers a more flexible entry point for those looking to break into the sneaker reselling world, but it also comes with its set of challenges and considerations.

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