How does dropshipping work?

Dropshipping is a retail fulfillment method wherein a store doesn't actually stock the products it sells.

Instead, when a store sells a product, it purchases the item directly from a third party, like AliExpress. This third party then ships this item directly to the customer who purchased.

Not holding inventory means not spending money on products that might not sell. Only buy from a third party what you’ve already sold for profit! Win win!