Dropshipping is a business model where a retailer does not keep products in stock. Instead, when a retailer sells a product, it purchases the item from a third party and has it shipped directly to the customer. This means the retailer doesn't have to handle the product directly, reducing upfront costs and inventory management.
In dropshipping, the retailer acts as a middleman between the customer and the supplier, earning a profit on the price difference. This model is popular in e-commerce as it allows retailers to offer a wide range of products without the need for large investments in inventory. However, retailers must carefully select reliable suppliers to ensure timely delivery and quality products.
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