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

In a typical dropshipping arrangement, the seller acts as a middleman between the customer and the supplier. The seller lists products on their online store, sets the prices, and handles customer orders. When an order is placed, the seller then purchases the product from the supplier, who ships it directly to the customer. The seller makes a profit by selling the product at a higher price than the supplier's cost.

One of the main advantages of dropshipping is that it eliminates the need for inventory management and upfront investment in stock. It allows entrepreneurs to start an online business with minimal risk and cost. Additionally, dropshipping allows sellers to offer a wide range of products without the need for physical storage space.

However, dropshipping also has some challenges. Since the seller is reliant on the supplier for product availability and shipping, there may be issues with stockouts or delayed deliveries. Moreover, profit margins in dropshipping tend to be lower compared to traditional retail models.

There are several popular platforms and marketplaces that enable dropshipping, including Shopify, WooCommerce, and Amazon. These platforms provide tools and integrations to streamline the process of setting up an online store and managing dropshipping operations.

Overall, dropshipping is a business model that offers flexibility and low upfront costs, making it an attractive option for entrepreneurs looking to start an online retail business.

References:
- Shopify: What is Dropshipping? (https://www.shopify.com/encyclopedia/dropshipping)
- Oberlo: What is Dropshipping? (https://www.oberlo.com/blog/what-is-dropshipping)
- Entrepreneur: What is Dropshipping? (https://www.entrepreneur.com/encyclopedia/drop-shipping)