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 model has several advantages, including lower startup costs, no need for inventory management, and the ability to offer a wide range of products. However, it also has drawbacks such as lower profit margins, reliance on third-party suppliers for product quality and shipping, and potential issues with stock levels. Success in dropshipping often requires effective marketing, reliable suppliers, and good customer service.