Dropshipping is a fulfillment model that enables online stores to sell products without keeping inventory. Instead, when a customer buys a product, the retailer purchases it from a third-party supplier who then ships it directly to the customer. This model eliminates the need for a physical storefront and reduces the cost of warehousing, shipping, and handling products.

The dropshipping process involves four main steps: a customer places an order on the retailer’s website; the retailer buys the product from a supplier; the supplier ships the product directly to the customer on behalf of the retailer, and the retailer profits from the difference between the wholesale and retail price of the product.

Dropshipping has several benefits, including low startup costs, minimal risk, flexibility, scalability, and location independence. However, there are also some drawbacks, such as low margins, lack of control over product quality and shipping times, shipping delays and errors, and high competition.

Many entrepreneurs use platforms like Shopify to start and manage their dropshipping businesses, with the help of various Shopify apps designed for dropshipping.