Glossary · Ecommerce metrics

What Is Dropshipping?

A model where a seller lists products they don't stock, and a supplier ships orders directly to the customer when a sale is made.

Definition

Dropshipping: A model where a seller lists products they don't stock, and a supplier ships orders directly to the customer when a sale is made.

Overview

Dropshipping is an ecommerce model where a seller lists products they do not hold in inventory. When a customer orders, a third-party supplier ships the product directly to them. The seller never touches the goods.

It lowers the upfront capital needed to start selling, which is why many newer TikTok Shop sellers begin this way.

How it works

You market and sell the product, the supplier fulfills it, and your margin is the gap between your price and the supplier's cost plus fees. Your job is demand generation, which on TikTok Shop means creators.

Why it matters

Dropshipping can work on TikTok Shop, but the thin margins make creator commission, platform fees, and refunds especially punishing. Tight unit economics and reliable fulfillment matter even more than in a stocked model.

How brands use it

Dropshippers lean heavily on creator content to drive demand for products with limited differentiation, so efficient creator recruiting and disciplined margin math decide whether the model survives.

How Hubfluence supports this workflow

Hubfluence helps dropshippers and stocked brands alike build the creator engine that drives demand: find fitting creators, recruit at scale, and track which ones actually sell.

Learn more about Outreach Sequences, or book a demo to see how Hubfluence runs your TikTok Shop creator program end to end.

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