Dropshipping is a retail business model where the seller accepts customer orders but does not keep any stock on hand. Instead, the seller transfers the orders and shipment details to a manufacturer, wholesaler, retailer, or fulfillment house, who then ships the goods directly to the customer. The seller is responsible for marketing and selling the product, but has limited control over product quality, storage, inventory management, and shipping.
Dropshipping has become popular among e-commerce entrepreneurs because it requires minimal initial investment no warehousing and overhead costs. It can be managed from any location with an internet connection. However, there are drawbacks to dropshipping, including lower profit margins, less control over product quality, and an increased risk of shipping delays or supply chain issues.