Dropshipping is a method that businesses use which do not require that business to keep products in stock, in a large warehouse or back-office storage area for example.

Instead, the business promotes and sells products at a price, which is higher than the price they have already to purchase the products for, from a large supplier. Thus the business makes a profit when they sell them.

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When the business sells the product to a customer, from his online store, or sometimes brick and mortar store, at his sale price, he then contacts the source supplier, the supplier with the warehouse etc, this 3rd party supplier, then packages the product, and ships it directly to the customer, sometimes with the selling businesses label, else with plain blank packaging, the receiver, the customer then receives what he purchased, usually unaware of where the product came from.

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The above explains dropshipping very briefly, we will be going into more detail in other sections of this site as we progress.