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With dropshipping, rather than handling and shipping products directly, a third-party is responsible for making it happen, which means business owners don’t have to manage any inventory.

When an order is placed, it is sent to the supplier, who then ships directly to the customer, eliminating the manual process and space restraints that most brands deal with when it comes to shipping their products.

We've all seen at least one photo of brands operating out of a home in the early days; complete with boxes jam-packed in every corner of the space.

Inventory-based businesses can get out of control fast without a warehouse or large space to store product. But with the dropshipping model, that's not an issue.