Dropshipping is an order fulfillment method that enables you to sell products without holding inventory or purchasing products up-front. Instead, when a product sells, you buy it from a third party that will ship the item directly to the customer. The third-party can be a manufacturer, wholesaler, or another retailer. Dropshipping removes the fears and costs associated with buying and carrying inventory that may not sell. Separation from supply chain management, inventory, and order fulfillment differentiate dropshipping from traditional retail models.
Dropshipping, by itself, isn’t a business. It’s one aspect of running an online store. It’s critical to realize that because you’ll need a robust understanding of online retail to achieve your goals and sales targets.