This article is devoted to analysis of the theoretical foundations and economic essence of drop shipping and the influence of COVID-19 on drop shipping development. The authors conducted  bibliometric analysis of the most relevant publications in the Scopus database. The most cited publications on this theme are  presented in the paper. Systematization of the scientific background shows that e-commerce exponential growth enhances the impact of drop shipping on developments in business processes. Thus, such an e-commerce drop-shipping supply chain has many advantages. One of them is evident in collaboration with manufacturers and the search for consumers to be supplied for buying their goods and services. Concomitantly, a drop shipper advertises a product to a producer on drop shipper’s own websites employing all the marketing strategies and taking orders from the clients. The authors particularly noted the features of inventory management when such a method of e-commerce is used. The reason is that there is no need for a drop shipper to store any products. Hence, the inventory costs are drastically cut. This paper analyzes the main drop shipping tools and their advantages for improving business indicators. The paper embodies the essence of dropshipping from a drop shipper side. The article carries out an analysis of drop shipping types, the most common e-commerce platforms and marketing tools to improve   the running the business. This work compares advantages and disadvantages of drop shipping for both  a seller  and a buyer. Author's algorithm of drop shipping– steps of the drop shipping model functioning - is presented in the work as well as  current statistics of the interrelation of the pandemic COVID-19 and a tremendous growth of e-commerce. It was defined that the sales amount among  some product categories has soared several times as the pandemic started in the world. Clients preferred to purchase toiletries, medication, food, books, clothes and shoes in online stores. The results of the scientific study are analysis of the major indicators of the drop shipping market and forecast for the future rise in such purchases without a straight participation of producers. Due to the fact that this drop shipping innovative concept provides flexibility and time saving, the clients do not have to visit brick-and-stick stores. Which is attractive to clientele and used widely during the lockdown.