Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.

Here’s how it works:

1. A customer places an order for a product on a store’s website.
2. The store forwards the order to the supplier, who ships the product directly to the customer.
3. The store takes a profit from the difference between the wholesale price paid to the supplier and the retail price charged to the customer.

Advantages of drop shipping include lower upfront investment and lower risk, as the store does not have to purchase inventory upfront. It also allows for a wider range of products to be offered on the store’s website without the need for a large physical inventory.

Disadvantages of drop shipping include the fact that the store has less control over the quality and speed of the product fulfillment process, as it is relying on a third party to handle the shipping. Additionally, there may be additional costs, such as shipping and handling fees, that can reduce profit margins.

It’s important to carefully research and choose a reliable supplier to ensure a positive customer experience and to maintain the reputation of the store.