What is Dropshipping?

Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party (usually a wholesaler or manufacturer) and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.

In a typical dropshipping arrangement:

Dropshipping has become popular because it allows entrepreneurs to start an e-commerce business with minimal upfront investment. They don't need to purchase inventory or manage a warehouse, making it an attractive option for those looking to test the market or operate a business with low overhead costs. However, dropshipping also comes with its own set of challenges, such as lower profit margins, reliance on third-party suppliers, and potential issues with inventory management and shipping times.