Normally when you want to sell a product, you go for it from the producer or supplier and then keep it in your warehouse/store. You wait for a customer to place an order then you ship it to them. With drop shipping, this traditional means of supplying is ruled out. Here, a customer makes an order; you forward the order to your supplier who in turn ships the product to the customer directly. Note that you have no contact with the product hence saving you costs such as storage costs.