When you sell products to customers but use a third party to hold your inventory and ship your orders, you are employing a ______ strategy.

A. Dropshipping
B. Direct sales
C. Channel stuffing

Correct Answer: A

Dropshipping is an order fulfillment method where a business doesn't keep the products it sells in stock. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders. Dropshipping business owners focus on the branding, marketing, and customer management part of their business while a third party handles their logistics for them.