Drop Shipping is an order fulfillment method within supply chain management where the seller acts as an intermediary without holding inventory. When the seller receives an order from a customer, they forward the order and shipment information to a third-party supplier, such as a manufacturer or wholesaler. The third party is then responsible for shipping the goods directly to the customer.
This method eliminates the need for the seller to manage inventory, stock products, or handle shipping logistics. The seller can thus focus on marketing and selling the products while the third-party supplier takes care of the order fulfillment and shipping.