What is a dropshipper?

How dropshipping works

In a dropshipping model, a customer buys from your online store. You then place the order with your supplier — often automatically through an app — and pay the wholesale price. The supplier ships the item directly to your customer. Your profit is the difference between what the customer paid and your total costs. The term “dropshipper” is used for both the supplier who ships orders and, informally, the retailer who sells them.

Pros and cons

• Pro: low upfront stock investment.
• Pro: test many products quickly.
• Pro: run a store from anywhere.
• Con: lower margins than buying in bulk.
• Con: less control over quality and delivery.
• Con: competition — many sellers can list the same products.
• Con: you remain legally responsible to customers.

Your legal responsibilities as the seller

In the UK the retailer — you — is responsible to the customer, even though the supplier ships the order. Under the Consumer Rights Act 2015 goods must be of satisfactory quality, fit for purpose and as described. Online buyers generally have a 14-day cancellation period under the Consumer Contracts Regulations. You also need a clear privacy policy that complies with UK GDPR, and accurate product safety information for regulated items such as toys, electricals and cosmetics.

Marketplaces vs your own store

You can dropship through your own Shopify or WooCommerce store, or through marketplaces such as eBay and Amazon, where dropshipping policies apply — read each marketplace’s current rules carefully. Marketplaces bring ready-made traffic but more competition and fees; your own store gives control over branding and customer data but you must drive traffic yourself. Many sellers start on one and expand later.

Costs to plan for

• E-commerce platform subscription or marketplace selling fees.
• Apps for importing products and syncing orders.
• Domain name and any paid themes.
• Sample orders to test quality and delivery.
• Advertising budget to test products.
• Payment processing fees on every sale.
• Accounting software and possibly an accountant.

We do not quote specific prices because they change frequently — check each provider’s current pricing.

A simple launch checklist

Register your business with HMRC, pick a niche, shortlist suppliers from our directory, order samples, set up your store with clear delivery, returns and privacy policies, calculate margins with our calculator, and launch with a small advertising test. Review results weekly and drop products that do not perform.

Who does what

Common beginner mistakes

• Selling products you have never seen or tested.
• Promising delivery times the supplier cannot meet.
• Ignoring VAT and registration requirements.
• Underestimating advertising costs.
• Copying competitors’ product descriptions and images without permission.

Dropshipping vs holding stock

Holding your own stock usually means lower unit costs, faster dispatch and full control over packaging, but ties up cash and space and leaves you with unsold items if demand falls. Dropshipping reverses those trade-offs. Many successful stores start with dropshipping to find products that sell, then buy stock of proven best-sellers or use a third-party fulfilment warehouse.

Customer service in a dropshipping store

Customers contact you, not the supplier. Prepare templates for common questions — where is my order, how do I return this, the item arrived damaged — and agree with each supplier how quickly they will provide tracking and handle faults. Fast, honest replies protect your reviews and reduce chargebacks.

Is dropshipping right for you?

Dropshipping suits people who enjoy marketing, customer service and testing ideas, and who are comfortable with thin margins at the start. It is not passive income: you need to manage suppliers, advertising, customer queries and compliance. Read our step-by-step UK guide before you begin.

Frequently asked questions