This video explains Dropshipping in Odoo 16. Dropshipping is the method of selling a product directly from a vendor to a customer without any intermediary storage.
When a store or a retailer sells a product by drop shipping, the product is directly transferred from the vendor to the customer. In this process, even though the retailer acts as a third party, the retailer doesn't have to store the ordered product. Thus warehouse management overheads can be also avoided.