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Dropshipping is a type of retail sale where the seller doesn’t handle the goods physically and doesn’t keep stock of goods. Instead, the seller forwards orders from customers to other suppliers, who ship goods directly to the customers on the seller’s behalf. The suppliers who actually fulfill orders on the seller’s behalf can be other retailers, wholesalers, or manufacturers of the goods directly.

Dropshipping where sellers change only packaging to sell under their own brand is called white label dropshipping. In case the seller also alters the product itself, according to their needs, e.g. by printing logos on the product, changing the product’s color, design, or the materials, etc., it is called private label dropshipping.