Dropship

Dropshipping is a retail fulfillment model where the seller (you) takes orders and payment from customers without ever touching the physical product. When a sale happens, you send the order details to a supplier (typically a manufacturer or wholesaler) and they ship directly to your customer. You never warehouse inventory. You never pack a box.

The Simple Version

Dropshipping means you are the middleman between a supplier and a customer. You build the storefront, run the marketing, and handle customer relationships. Your supplier builds and ships the product. When a customer buys from you, that order goes to your supplier, they ship it, and you keep the difference between what the customer paid and what you paid the supplier.

The Advantage

Zero inventory risk. You do not pay for products until they are already sold. This dramatically lowers the capital required to start. You can test whether a product sells before committing to buying 500 units. Dropshipping is how most new e-commerce sellers start, because the downside risk is limited to marketing spend rather than warehoused inventory that might not sell.

The Tradeoff

Because you are not controlling fulfillment, you are dependent on your supplier’s speed, packaging quality, and inventory availability. If your supplier ships late or runs out of stock, that is your customer service problem, not your supplier’s. Margins are also lower in dropship models than wholesale reseller models because you are not getting the best possible price.

For TikTok Shop, dropship models require a reliable daily communication system between you and your supplier to ensure orders placed on TikTok get communicated and shipped within TikTok’s required 2–3 business day window. Missed ship windows lead to seller penalties and bad reviews.

How It’s Used on This Site

Dropshipping is covered in the TikTok Shop blog series as one of three fulfillment models new sellers can choose from, alongside wholesale reselling and Fulfilled by TikTok. The glossary connects these options so readers can compare tradeoffs.