What is dropshipping and how does it work?

Dropshipping is an e-commerce business model where you sell products without ever holding inventory. Think of yourself as a middleman. A customer buys a product from your online store. You then purchase that item directly from a third-party supplier. That supplier ships the product straight to your customer. You never physically handle the product yourself. Your profit is simply the difference between your selling price and the supplier's cost. Essentially, you manage the storefront and marketing, while your supplier handles all the shipping and logistics. It’s a popular way to start an online business with low overhead.