Academy · Mechanics

How dropshipping works, order by order

Follow one dropshipping order from the customer's tap to the courier's cash settlement, including who pays whom at each step.

Updated

Dropshipping is easiest to understand as a single order travelling through five hands. Once you can trace one order, the whole model is obvious.

01You list the product

You choose a product from a supplier catalogue, set your own selling price, and publish it to your storefront with your own brand name, images and description.

02The customer orders

A shopper picks a product, enters a name, phone number and address, and pays at checkout. The order lands in your dashboard immediately.

03You pass the order to the supplier

You pay the supplier cost for that single unit and submit the customer's shipping details. The supplier picks, packs and hands the parcel to a courier.

04The courier delivers

A courier collects the parcel and delivers it. You add the tracking details to the order so the customer can follow it.

05You get paid

Payments settle into your payment account, minus provider fees. What is left after supplier cost and delivery is your profit.

Questions

Does the customer know it is dropshipped?
They see your brand. Good suppliers ship without their own marketing material, and your storefront and delivery slip carry your store name.
What happens if the supplier runs out of stock?
The order cannot ship. This is why stock sync matters: your listing should go unavailable automatically when supplier stock hits zero.

Do this in Global DropShop

Record the courier and tracking number on each order and keep the customer updated.

Start selling in the UK today

Create your store free. No card required — you only pay product cost when an order is placed.