What is dropshipping? Definition and how it works
In short
In short: Dropshipping is a fulfilment model in which the store never holds inventory. When an order comes in, you buy the item from a supplier who ships it directly to your customer. You keep the difference between your retail price and what you paid, and you carry all the responsibility towards the buyer.
Because there is no stock to buy upfront, the model is cheap to start and easy to change: you can add or drop a product in an afternoon. What you trade away is control. Delivery times, packaging and product quality belong to your supplier, while complaints, refunds and reviews belong to you.
How the model actually works
The order arrives in your store, you forward it to the supplier, and the supplier ships to your customer. Some suppliers integrate with Shopify and sync stock and tracking automatically; others still work by spreadsheet, which becomes unmanageable as order volume grows.
The margin is thinner than it looks. Between the supplier's price, the ad spend needed to bring the buyer, payment fees and refunds, a product that appears to double in price can end up barely profitable. Model the numbers before you launch, not after the first campaign.
Why it matters for an online store in the EU
Selling to EU consumers means the legal duties sit with you, not with your supplier: clear delivery times, the statutory right of withdrawal, a working returns address and correct information on who is selling. Long shipping from outside the EU also brings customs and VAT handling that your buyers will notice at delivery. Check the current rules with your own accountant or lawyer.
That is why many EU stores use dropshipping to validate demand and then move the best-selling products to a local supplier or their own stock. Fast local delivery and a simple return process are hard to beat once a product proves itself.
Common mistakes
- Promising delivery times your supplier cannot meet, which turns into refunds and chargebacks.
- Never ordering a sample, so you discover the real quality from your customers' complaints.
- Relying on one supplier with no backup when a product goes out of stock mid-campaign.
- Copying the supplier's product descriptions and images, so your pages look like everyone else's.
- Calculating margin on the product price alone, ignoring ads, payment fees and returns.
Related terms & next steps
Frequently asked questions about dropshipping
Is dropshipping still worth starting?
As a way to test products with little capital, yes. As a long-term business built on slow shipping and generic products, it is a hard place to stay. Most stores that last use it to find winners, then switch those products to a local supplier or their own stock.
Who is responsible if the supplier ships late or sends the wrong item?
You are, in the eyes of your customer and of consumer law. The contract is between the buyer and your store, so the refund, the replacement and the reputation are yours to manage. Choose suppliers accordingly and keep a written agreement on delivery times and returns.
Can you build a dropshipping store for me?
Yes. We build the Shopify store, connect the supplier and the order flow, and set up payments and tracking. A Shopify store starts from 3,820 RON + VAT, with 50% upfront and 50% on delivery, and timelines from 5 days to 4-6 weeks. Your first call is free.
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