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Dropshipping is a retail sales approach where a store owner does not keep the items it offers in stock. As an alternative, when an establishment sells a product, it buys the item from a third party and has it delivered directly to the customer. Therefore, the DropShipper never sees or handles the item. The biggest difference in between dropshipping and the conventional retail structure is that the selling merchant doesn’t stock or own stock. Instead, the merchant buys stock as needed from a 3rd party– generally a wholesaler or manufacturer– to meet orders of their customers.