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Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a customer places an order, the store purchases the item from a third-party supplier—usually a wholesaler or manufacturer—who then ships the product directly to the customer.
Key points:
* No inventory management: The seller doesn’t need to buy or store products in advance.
* Low startup costs: Because there’s no need for a warehouse or upfront product investment, it’s a common model for new e-commerce businesses.
* Wide product selection: Sellers can offer many different products since they don’t need to stock them physically.
* Lower margins and less control: Profit margins can be lower, and the seller has limited control over shipping speed, packaging, and product quality because the supplier handles fulfillment.
Overall, dropshipping allows entrepreneurs to run an online store with fewer logistical responsibilities, but it requires careful supplier selection and good customer service to overcome its limitations.

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