Drop Shipping is when you can have a store but not carry any products, there are companies that allow others to sell their product.
Ok A is the drop shipper, B the store owner, and C costumer
B contacts A to inquire about drop shipping. A Says Yes you get say 30% discount. Ok So B puts the products on their site, C comes and orders some stuff, B orders from A. A them mails it out usually with nothing saying that this came from As store but from Bs.
So In a way its a bonus for A and B, A dont have spend alot on products, or know how to make them. and B its like another person getting the word out on their product. If that makes sense