What Does Drop Ship Mean?

What Does Drop Ship Mean?

Drop ship, is when a company wants to sell a manufacturers product, but doesn’t want the expense of storage or shipping. When you drop ship, you take the order from a customer, then give that order to another company who actually ships the product out from their warehouse.

So drop shipping is where the retailer, sells a product to a customer without actually holding stock. The stock is held by the wholesale supplier who “drop-ships” the goods directly to the customer once you have transferred the customer order and shipment details to them. The wholesale supplier ships the goods directly to the customer, so the retailer does not have any inventory or delivery issues.

Drop shipping is really beneficial for smaller retailers, online sales, auctioneers, those working from home and those who primarily use sales catalogues.

See also: What is Dropshipping