Glossary of Terms - Drop Shipping |
Dropshipping
: Drop Shipping is considered
a management technique used in supply chains
where the retailer doesn't actually have
an item in stock. Instead, the retailer
transfers customer orders directly to the
wholesaler or manufacturer who then ships
the items directly to the consumer. This
technique is especially common in online
retail where the orders are set up through
an online store and shipping details are
then sent to the manufacturer.
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Some shops
also drop ship but maintain a small supply
of the items at the store as "show"
or "sample" stock. In order to
avoid stigma or potential cost-cutting by
the consumer, some retailers set up drop
shipping so that there is no return address
or so that the packing slip is customized
to hide the manufacturer details.
Primary users of drop shipping include Small
Businesses, Online Auctions, and Custom
Products where manufacturers produce specialized
products (complete with labels) for a company
and ship directly to the consumer. Most
businesses choose drop shipping to minimize
inventory and reduce overall shipping costs
for the business.
Most dropshipping lists charge a fee to
see their dropshipping companies but there
are also a number of good free dropship
wholesale directory sites around which
offer similar services.
Also called : Mail Order, Supply
Chain, or Order Fulfillment. Also Dropshippers,
to Dropship Merchandise, and Blind Shipping.
More Drop Shipping Information : Famous
Entrepreneurs or Internet
Entrepreneurs
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