This might sound confusing, but drop shipping is actually a form of order fulfillment. Drop shipping is the process of shipping product that never passes through the hands of the vendor or retailer. The retailer or vendor is someone like Amazon, eBay or other e-tailers. With drop shipping, the vendor does not hold the inventory for the orders. The inventory sits with the supplier or fulfillment house. The process of fulfilling the order by drop shipping is the retailer sends the order to the supplier to ship directly to the customer on their behalf. The retailer makes money off of the difference between what the customer pays and the cost of the goods from the vendor.
You list and sell products that you do not own but that are instead owned by a manufacturer or wholesaler.
-Customers place orders with (and pay) you.
-You place a duplicate order with (and pay) the manufacturer or supplier.
-The manufacturer or supplier then picks, packs, and ships their product to the customer.
KEY DIFFERENCES ( Order Fulfillment vs Drop shipping
-You are buying inventory only after customer places an order.
-Drop shipper is typically the manufacturer or wholesaler of the product.