What is Dropshipping in Retail? Explained

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. This means the retailer doesn't have to handle the product directly or maintain inventory, making it a low-risk model. Dropshipping is popular in e-commerce, allowing businesses to offer a wide range of products without the challenges of traditional inventory management. While it offers flexibility, successful dropshipping requires careful supplier selection, efficient logistics, and a focus on customer satisfaction.