Business Terms Dictionary

Dropshipping

A retail fulfillment method where the seller does not keep products in stock. Instead, when a customer places an order, the seller purchases the item from a third-party supplier who ships it directly to the customer.

What is it used for?


This model eliminates the need for inventory management and warehousing but requires strong supplier relationships and reliable shipping logistics.


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With ForgeFlow Cloud ERP, dropshipping is seamlessly integrated with advanced inventory and demand-driven processes. Whether you’re outsourcing manufacturing or directly shipping from suppliers, the system takes into account lead times, shipping times, and manufacturing cycles to ensure accurate inventory planning.
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