The dropshipping phenomenon is expanding daily and while the business model will likely change and morph into something different than it currently is. It represents a very interesting way for people to make money by connecting manufacturers with sellers. In a nutshell, thousands of products are sold by manufacturers via marketplaces such as Aliexpress.com
There are millions of products that are sold very inexpensively, shirts for $1, sunglasses for $2. It’s the same prices you would pay if you had a physical store and was buying the goods from the manufacturer. As a dropshipper what you do is connect the manufacturer with consumers via your online store. So you don’t own the goods and you don’t ship the goods (the manufacturer does that) but you will market them and determine the price that you want to charge. Consumers can them buy them from your store and them shipped directly. It’s an interesting model where the emphasis for the dropshipper is to market (and sell) products that others have made. We will be learning more about it in Marketing 471E (social media marketing).