Drop Shipping

What Is Drop Shipping?

Drop Shipping is a ‘supply chain technique’ in which the seller of the goods does not hold stock at their premises. Instead, a central warehouse is nominated and an agreement is made with suppliers to hold the inventory.

How Drop Shipping Works?

Simply provide the customer’s order and shipping details to the wholesaler, who will then ship the goods directly to the customer.

The Benefits of Drop Shipping?

Drop Shipping is a simple, yet effective way to get started in E-Commerce. Such strategies are a good way of minimizing stock holding, therefore decreasing overall shipping costs and reducing delivery times to customers. This provides a means of concentrating on other aspects of your business – such as marketing, customer service and general operations.

Further Benefits of Drop Shipping

  • As you don’t have to worry about inventory of fulfillment issues, you are free to operate your business anywhere you can get an internet connection.
  • Drop shippers can buy in larger volumes, providing a more competitive price on products and shipping (usually wholesale).
  • There’s no need to invest in stock and have the danger of suddenly having large volumes of stock that you are unable to sell.

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