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Glossary

Dropshipping

Selling goods you do not stock: the customer orders from your store, you buy from a supplier who ships directly to them, and you keep the difference. An e-commerce model that runs on paid traffic and thin margins.

Also called: drop.

A dropshipper builds a store, drives traffic with ads and forwards each order to a supplier, often on a marketplace, who ships it. No warehouse, no inventory, but no control over delivery times either, and a lot of refunds when shipping takes a month.

Dropshipping shares its playbook with affiliate media buying: winning products, creatives, landers and testing. The difference is who owns the customer and the risk: the dropshipper, not an advertiser.

Related terms: E-commerce, Goods offers, Cash on delivery.