Introduction:
Dropshipping is a retail fulfillment method where the online store doesn’t keep the products it sells in stock.

Definition:
In dropshipping, when a customer places an order, the retailer passes the order to a third-party supplier who then ships the product directly to the customer.

How It Works / Examples:
For instance, an entrepreneur can run an online store without holding inventory by partnering with a supplier from platforms like AliExpress. When a sale occurs, the supplier handles shipping, allowing the retailer to focus on marketing and customer service.
Learn more on Wikipedia: Dropshipping.

Why It Matters:
Dropshipping lowers upfront investment and inventory risks, making it an attractive model for those new to ecommerce. However, it requires careful supplier management to ensure quality and timely delivery.

Additional Resources:

• Research best practices and potential challenges in dropshipping to build a sustainable business model.