Dropshipping is a fulfillment tactic where items are purchased and shipped directly from a third-party supplier when a customer makes an online purchase. The dropshipping model is popular as dropshippers do not need to hold products in inventory, minimizing inventory costs. 

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.