Dropshipping is a comparatively new business model which the seller does not need to invest any money on stocking products.
Compare with normal business models, seller always need to invest a large amount of money, such as 10 thousand dollars, to buy in some products from wholesaler. The amount is always much larger, but seldom less than 10 thousand dollars. Then the seller has the product to sell to customer. Therefore, a seller always need to do a lot of savings or work hard on getting as much funding as possible from investors before starting his or her own business. (which is hard!)
Now with dropshipping, a seller does not need so much investment. To be more accurate, seller does not need to invest any money before starting his or her own business, but they can still get …