Dropshipping in a nutshell is where a supplier/dropshipper carries the merchandise in stock and ships out the product to your customer for you. The customer purchases the item through your store/website & pays you, you order it from the supplier/dropshipper and pay them for the item, then the supplier/dropshipper sends the package straight to your customer. Your profit is the difference between the suppliers price and the price you sold the item to the customer for.
This is a helpful tool for new businesses because you won't have to carry loads of inventory, because the dropshipper carries and stores your inventory for you. Be careful though, there are a lot of "dopshippers" & "wholesalers" that are nothing more than a gateway to the real suppliers. They take your order once you send it to them, then forward the order to the real dropshipper/supplier, and take their cut of the price of sale thus reducing your profit.
Hope this helps
