What is 'drop shipping?' If you've heard anything about drop shipping at all, you might think it is the answer to every internet entrepreneur's dream. In a nutshell, you market and sell a product online at a price you choose. After your customer purchases the item, and you receive payment for it, you place an order for the product you just sold with a 'drop-shipper.' The drop shipper charges you a wholesale price and ships the product directly to your customer. You pocket the difference between the wholesale (or near wholesale) and retail prices. The best part is that you have no inventory to hold or finance, and no shipping hassles.