Sourcing glossary
Dropshipping
Also known as: Drop shipping, Dropship
A retail model where the seller doesn't hold stock: when a customer orders, a supplier or fulfillment agent ships the product directly to the customer.
For online stores sourcing from China, dropshipping usually means either ordering each sale from an AliExpress seller or using a China-based agent that buys, stores, packs and ships orders for you. It keeps start-up costs low, but delivery takes longer than from local stock and you control less of the product and packaging.
Import rules apply to dropshipped parcels too. The US ended duty-free de minimis treatment for low-value shipments in August 2025, and the EU introduced a €3 duty on low-value parcels from July 2026. See China dropshipping agent vs AliExpress for a full comparison.
Related terms
Guides that use this term
Part of Amazon FBA & Dropshipping.