Dropshipping is an e-commerce model in which a retailer sells products without keeping them in stock. Instead, when a store sells a product, it purchases the item from a third party (usually a wholesaler or manufacturer) and has it shipped directly to the customer. This means the retailer doesn't handle the product directly. The biggest advantage of dropshipping is the low upfront investment, as there's no need to purchase inventory or manage a warehouse. However, it can involve lower profit margins, less control over shipping and product quality, and high competition. Dropshipping is popular among entrepreneurs looking to start an online business with minimal investment.