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, it purchases the item from a third party and has it shipped directly to the customer. Here’s how it works:

1. **Setting Up a Store**: A dropshipper creates an online store or partners with an existing e-commerce platform.

2. **Product Selection**: They select products to sell from suppliers or manufacturers who offer dropshipping services. These suppliers often provide product details and images for the online store.

3. **Listing Products**: The dropshipper lists these products on their online store, setting their own prices and descriptions.

4. **Customer Orders**: When a customer places an order on the online store, the dropshipper purchases the product from the supplier, usually at a lower price than the one listed on their store.

5. **Shipping**: The supplier then ships the product directly to the customer’s address without the dropshipper ever physically handling the product.

6. **Profit Margin**: The dropshipper makes a profit by selling the product at a higher price than they paid the supplier.

Benefits of dropshipping include lower upfront costs, a wide product selection, and the ability to operate from anywhere. However, it also comes with challenges like thinner profit margins and less control over inventory and shipping times.