f you’re starting an online store—or exploring ways to simplify order fulfilment—you may have come across the term dropshipping. But what does it actually mean, and how does it compare to other fulfilment models like using a 3PL?

What Is Dropshipping?

Dropshipping is a retail fulfillment method where an online store doesn’t keep products in stock. Instead, when a customer places an order, the store purchases the item from a third-party supplier, who then ships it directly to the customer.

This means the store owner never handles or stores the product themselves.

How Does Dropshipping Work?

Here’s a simplified breakdown of how dropshipping works:

You list products on your website (from a supplier who offers dropshipping).
A customer places an order through your site.
You forward the order and payment to your supplier.
The supplier ships the product directly to your customer.

You make a profit on the difference between the retail price you charge and the wholesale price you pay.

Pros of Dropshipping

Low startup cost: No need to invest in inventory upfront.
Easy to launch: You don’t need a warehouse or logistics team.
Flexible location: Run your store from anywhere with an internet connection.
Wide product range: You can offer more products without managing stock.

Cons of Dropshipping

Lower profit margins: You don’t get bulk pricing when ordering one item at a time.
Less control: Quality, packaging, and shipping speed depend on the supplier.
Inventory issues: Items may go out of stock without notice.
Customer service challenges: Returns, delays, and damages can be harder to manage.

Dropshipping vs. 3PL: What’s the Difference?

While both models remove the need for you to ship products yourself, there are key differences:

A 3PL is ideal for brands that want faster shipping, better control over packaging and brand experience, and room to scale—especially once sales are growing consistently.

Is Dropshipping Right for You?

Dropshipping is a great way to test products or enter eCommerce with minimal risk. But if you’re building a long-term brand and care about quality, delivery times, and customer satisfaction, moving to a 3PL might be a better fit as you grow.

Need Help Scaling Beyond Dropshipping?

At Ballina Byron 3PL, we work with growing eCommerce brands that are ready to move from dropshipping to a more reliable and scalable fulfilment solution. Our warehouse and expert team handle storage, picking, packing, and shipping—so you can focus on growing your brand.

Get in touch to learn how we can help take your business to the next level.

What is Dropshipping?