> ## Documentation Index
> Fetch the complete documentation index at: https://docs.laravelshopper.dev/llms.txt
> Use this file to discover all available pages before exploring further.

# External Product (Dropshipping)

> Products fulfilled by a third-party supplier, ideal for dropshipping and marketplace models.

An external product is an item listed in your store but **fulfilled and shipped by a third-party supplier**. You don't hold inventory. When a customer places an order, the supplier handles storage, packing, and shipping directly to the customer. This is the foundation of a **dropshipping** business model.

## When to Use External Products

Use the External product type when:

* **Dropshipping**. You sell products that a supplier ships directly to your customers
* **Affiliate products**. You list products from another store and earn a commission
* **Marketplace model**. You curate products from multiple vendors in your catalog
* **Print-on-demand**. Items are printed and shipped by a third-party service
* **Made-to-order**. Products manufactured by a partner after the order is placed

## How Dropshipping Works with Shopper

The typical dropshipping flow with External products:

1. You list the product in your store with your own pricing and branding
2. A customer places an order on your store
3. You forward the order to your supplier
4. The supplier ships the product directly to your customer
5. You keep the profit margin (your price minus supplier cost)

## What Makes External Products Unique

External products have the most simplified configuration since fulfillment is handled externally:

| Feature                      | Available | Notes                                             |
| ---------------------------- | --------- | ------------------------------------------------- |
| **Shipping**                 | No        | Handled by the supplier                           |
| **Inventory tracking**       | No        | Managed by the supplier                           |
| **Attributes**               | No        | Product specs come from the supplier              |
| **Variants**                 | No        | Create separate external products for each option |
| **Digital files**            | No        | Not applicable                                    |
| **Pricing**                  | Yes       | Set your retail price (markup over supplier cost) |
| **SEO**                      | Yes       | Optimize for your store's search visibility       |
| **Categories & collections** | Yes       | Organize in your catalog as usual                 |
| **Media**                    | Yes       | Use supplier images or your own product photos    |

## Configuring an External Product

After creating an external product through the [creation wizard](/v2/user-guide/catalog/products/creating-product), the configuration focuses on:

### Pricing Strategy

The key to dropshipping profitability is your pricing:

| Field                | Description                                                             |
| -------------------- | ----------------------------------------------------------------------- |
| **Price**            | Your retail selling price (what the customer pays)                      |
| **Compare at price** | Optional higher price to show a deal                                    |
| **Cost per item**    | The supplier's price (your cost). The difference is your profit margin. |

**Example pricing calculation:**

* Supplier price (cost): \$25.00
* Your retail price: \$59.99
* Compare at price: \$79.99
* **Your profit margin: \$34.99 per sale**

<Tip>
  A common dropshipping markup is 2x to 3x the supplier cost. Research competitor pricing to find the sweet spot between competitiveness and profitability.
</Tip>

### Product Information

Even though the product is fulfilled externally, you should provide:

* **Compelling descriptions**. Write unique descriptions rather than copying the supplier's text. This helps SEO and builds customer trust.
* **Quality images**. Use high-resolution product photos. Request sample products from your supplier for original photography when possible.
* **Accurate details**. Ensure your product descriptions match what the supplier actually ships.

## Example: Creating a Dropshipping Product

Let's create a "Minimalist Wooden Watch" from a dropshipping supplier:

1. **Type**: Select "External Product"
2. **General info**: Name it "Minimalist Wooden Watch, Natural Bamboo", write a unique product description that highlights craftsmanship and sustainability
3. **Associations**: Brand "EcoTime" (your private label), category "Accessories > Watches", collection "Eco-Friendly"
4. **Media**: Upload supplier product photos (front, side, on wrist, packaging)
5. **Stock**: Skip, supplier manages inventory

After creation:

* **Pricing**: Price $89.00, compare at $129.00, cost \$28.00 (supplier price)
* **SEO**: Title "Bamboo Wood Watch - Eco-Friendly Minimalist Timepiece"
* **Related products**: Link to other watches and accessories in your store

## Managing Supplier Relationships

While Shopper handles the storefront, you'll manage supplier relationships outside the platform:

| Aspect               | Your Responsibility                               |
| -------------------- | ------------------------------------------------- |
| **Order forwarding** | Send customer orders to your supplier             |
| **Inventory sync**   | Check supplier stock availability regularly       |
| **Shipping times**   | Communicate realistic delivery times to customers |
| **Returns**          | Coordinate returns between customer and supplier  |
| **Quality control**  | Order samples to verify product quality           |

<Warning>
  Always verify supplier reliability before listing products. Order samples, check shipping times, and ensure quality meets your standards. Your brand reputation depends on the supplier's execution.
</Warning>

## Dropshipping Best Practices

<CardGroup cols={2}>
  <Card title="Unique Descriptions" icon="pen-nib">
    Write original product descriptions. Avoid copying supplier text. It hurts SEO and looks generic.
  </Card>

  <Card title="Realistic Shipping Times" icon="clock">
    Be transparent about delivery times, especially for international suppliers.
  </Card>

  <Card title="Quality Samples" icon="magnifying-glass">
    Order the product yourself before listing it. Verify quality, packaging, and shipping speed.
  </Card>

  <Card title="Profit Margins" icon="chart-line">
    Account for marketing costs, returns, and refunds when setting your markup.
  </Card>
</CardGroup>

## Differences from Other Product Types

| Aspect             | Standard                   | External (Dropshipping)     |
| ------------------ | -------------------------- | --------------------------- |
| Inventory          | You manage stock           | Supplier manages stock      |
| Shipping           | You ship to customer       | Supplier ships to customer  |
| Upfront investment | Buy inventory first        | No inventory needed         |
| Profit margins     | Higher (you control costs) | Lower (supplier sets costs) |
| Fulfillment speed  | Under your control         | Depends on supplier         |
| Quality control    | You inspect products       | Limited visibility          |
| Risk               | Unsold inventory           | Supplier reliability        |