Say I’m running a store that sells cookies and you buy one from me for $2. Instead of actually making the cookies and storing them in my warehouse, I contract with a bakery that sells them to me for $1 each and mails them straight to you. In this case, I would earn $1 without having to do any work. Dropshipping is them mailing it to you and putting my name on it so you think it came directly from me.
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