Dropshipping / dropshipment

Dropshipping (or dropshipment) is a business model in which the seller (typically an e-shop) offers the goods of their supplier or producer. They do not, however, purchase the goods for their own warehouse, but rather forward each order directly to the supplier or producer, who then transports it to the customer. The seller pays the wholesale price for the goods and as such makes a profit from the difference between the wholesale and retail price.

In the Czech Republic, dropshipping is practised by some of the biggest e-shops, such as Alza.cz and MALL.CZ. Alza, for example, requires all their suppliers to use EDI invoicing, thanks to which they are able to withstand increases in the volume of invoices without running into any administrative difficulties.