Dropshipping refers to a far more hands-off process for the seller. In this case, the seller markets products and collects orders from customers at a retail rate. Once an order is received, the seller forwards a sales order to the product manufacturer at a wholesale rate. Then, the manufacturer processes the order and ships the products to the end customer. The seller charges a retail price, allowing them to keep the profits from their sale, while they outsource the rest of the process to the dropshipper (supplier). Ultimately, the seller does not have to own inventory or ever touch the products they are selling.
