If you reverse it: Effectively it’s the manufacturers outsourcing a sales funnel.

They bring the product listings to where the buyers can find them.

Sometimes you’re obliged certain volumes. Maybe I don’t want 100 widgets night one. Dropshipper has the relationship with supplier and can drop ship me one unit.

I can get a product tomorrow, vs a product in a month from AliExpress assuming the boat isn’t the slow boat.

"Perceived value". In other words, they make something seem higher quality. Whether that's actual value is debatable.

Marketing.

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.

What value do high frequency arbitrage and MM desks add?