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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryRetail Media & CommerceDropshipping

Retail Media & Commerce

Dropshipping

A retail model where the seller lists products but a supplier ships orders directly to customers, so the seller holds no inventory.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Dropshipping is a retail model in which a seller lists and sells products but a third-party supplier ships orders directly to customers, so the seller holds no inventory. It lowers startup costs and risk. However, margins are often thin, and sellers have limited control over product quality, shipping times and the customer experience.