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Drop Shipping or Dropship

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Drop Shipping Definition 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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