Five Amazon packages are stacked in two piles in front of a wooden door.
  • With the Amazon dropshipping model, your business is the forward-facing party customers see.
  • Meanwhile, a third party handles the physical logistics.
  • You make money by setting a higher price for customers than the price you got from your supplier.

Amazon defines dropshipping as "a fulfillment model that allows entrepreneurs to outsource handling and shipping products to a third party."