Dropshipping is a retail fulfillment method where the seller does not keep inventory of the products they sell. Instead, when a customer places an order, the seller purchases the item from a third party—typically a wholesaler or manufacturer—who then ships it directly to the customer. In essence, the seller acts as a middleman.
This model eliminates the need for a physical storefront or warehouse, significantly reducing overhead costs. Entrepreneurs can focus on marketing and customer service while outsourcing inventory management and logistics.
