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# Can I Start a Dropshipping Business With Companio?

Yes! The main requisite is that the business model follows this “pure” dropshipping model:

* You don't import/export the goods.
* The supplier/provider sends the goods directly to the customer.
* You don't keep stock, buy or sell anything directly.
* You don’t have a warehouse.
* The providers of the goods, in charge of sending the goods to the final customer, must be a company or a provider (or a limited number of them). The provider of the goods cannot be individuals or physical persons.
* Your company should act as a mere online sales facilitator.

Let's see a couple of examples of activities that are considered dropshipping (and, thus, are allowed), and activities that are not considered dropshipping for Companio (and hence, are not allowed):

# Example of a Dropshipping Business Model That's Supported by Companio

* Your business runs an online shop selling watches.
* The watches are stored by a Chinese provider in a Chinese warehouse.
* A customer from Germany buys a watch (a physical good) from your online shop.
* The customer pays 1000€ for the watch.
* Your business instructs the Chinese provider to send the watch to the customer.
* The provider ships the watch directly to the customer.
* The provider charges your business 700€ for the product and shipping.
* Your profit is 300€.

**Important notes:**
* Your business has a logistic arrangement with the Chinese provider to ship the goods directly to the customer, with shipping costs charged to your business; or
* Your business has an agreement with a shipping/logistics company that delivers the goods from the supplier to the customer; or
* Your business uses Amazon FBA to store the goods in Amazon warehouses.

# Example of a Business Model that Is Not Supported by Companio

* Your business runs an online shop selling watches.
* Your business buys the watches and they are shipped to your house or warehouse in your country, either on demand or beforehand. This watch costs 700€.
* A customer from Germany buys the watch (a physical good) from your online shop.
* The customer pays 1000€ for the watch.
* You or your business sends the watch via postal mail to the customer.
* Your profit is 300€.

**Important notes:**
* You or your business handles the purchase, collection, or retrieval of the watches, shipping them from the provider to your country.
* You or your business sends the watches (directly or via a postal/shipping company) from your country to the customer’s address.
* The shipment of the watch (either to you initially or to the customer later) is managed by you or your business, involving your company in a physical sale in a country other than Estonia.

| If you are already interested in Companio services, the Premium plan is perfect for dropshipping businesses. You can find out more about how we can help you by visiting our [pricing page](https://companio.co/pricing/).