This method of distributing products has been used since humans invented trade. You could ask: what is the value that grain traders provide? What is the value t

This method of distributing products has been used since humans invented trade. You could ask: what is the value that grain traders provide? What is the value that wholesalers provide? Selling things isn't as simple as making them, and demand magically appears. Middlemen are required (as an example, Wayfair is a "dropshipper"...and it is clear they provide a service). The reason why "dropshipping" exists is: there are lots of factories in China who make stuff and either don't want to distribute or can't distribute. More recently, Amazon fba exists too so you don't need physical space at all. Also: this is part of this modern meme where a new term is invented that totally obfuscates actual meaning. The point of "dropshipping" is just to give people something they want...it is just a business. But the term has been imputed with all kinds of odd ideas about what activities are legitimate for a business to perform. It is really very unhelpful if you want to understand business.