When your customer buys a product from you via eBay for example. You then go your supplier and buy the product at much less than the price you sold it for. (leaving you with a healthy profit margin) then fill out the delivery form, to be sent to your customer’s address.
Your order will then be dispatched in unbranded packaging straight to your customer’s door. (You will receive an estimated delivery date and dispatch notification via email) Just relay this information onto your customer.
More information on drop shipping? (No money needed to buy stock)
Drop shipping is a retail fulfilment method that most major stores and retailers use to fulfil online orders. Instead of buying stock upfront and to help with cash flow, when a store sells a product, it purchases the item from a third party (Normally the Wholesaler/Manufacture) and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.
The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the merchant purchases inventory as needed from a third party wholesaler or manufacturer – to fulfil orders.
This business model works internationally, you can sell from anywhere in the world with a good internet connection.