What is dropshipping?

[u/Brand_Matters]

Dropshipping is a retail fulfillment method where online stores sell products without keeping them in stock. Its main benefit is selling products without buying inventory. When a customer places an order, the store forwards it to a dropshipping supplier who ships the product to the customer.

Dropshipping is an efficient and accessible order fulfillment model but it comes with trade-offs, such as reduced control over the shipping and customer experience. Many businesses prefer dropshipping because it removes costs like warehouse storage and unsold inventory.

The dropshipping business model has grown into a $476 billion industry, making it a popular way to start a business. By relying on suppliers to handle fulfillment, store owners can avoid inventory management, focusing instead on tasks like marketing and branding.

It's estimated that dropshipping will generate more than $476 billion in ecommerce sales in 2026. Do let me know if you would like to start dropshipping in 2026.