Dropshipping is a retail fulfillment method where the store doesn't keep products in stock. Instead, when a customer places an order, the store purchases the item from a third-party supplier who ships it directly to the customer. The retailer never handles the product.
Dropshipping offers low startup costs and no inventory risk, making it accessible for new entrepreneurs. However, margins are typically thin, quality control is challenging, and shipping times can be long—especially for suppliers based overseas.
From a competitive analysis perspective, dropshipped products often share certain characteristics: generic product descriptions, long shipping estimates, prices that fluctuate frequently, and multiple stores selling identical items. This distinguishes them from genuine DTC brands with proprietary products.