Drop Shipment Reviews

Drop shipment definition:

Drop shipment is a new mode of product fulfillment in which merchandises are delivered from a manufacture or original supplier directly to a buyer after the sale is generated by the retailer, without passing through the warehouse of a distributor or retailer. In a drop shipment arrangement, the sellers act as a middleman between the manufacture and the buyers. Profits of the retailers come from the difference between the wholesale and retail price of the items sold.

Dropshipping is a great way to start an online business or supplement an already existing business as it requires no startup capital and there are minimal risks. Although slight delay between ordering and drop shipment may be existing, it’s ok because there is no need for a customer to walk out with their purchases. There will be the benefit of investing in products that you are sure will sell.

Manufacturers themselves are also glade with drop shipment, because the retailer essentially becomes an additional salesman of them. With drop shipping, the manufacturer can use inexpensive shipping methods from (DHL, UPS,localdelivery companies) to get the ordered product to the worldwide customer directly. And they will also own much more secured warehouse space than most retailers, so their products remain safe until ordered.

In fact not all manufacturers allow drop shipment. Since for every individual orders, personnel have to be assigned to process and ship it, which means the main shipping and receiving system may become bottle-necked. Some manufactures only deal in bulk orders to larger retailers, making it impossible for smaller outlets to custom order only a few items.

However, for many small retailers and internet-based stores, drop shipment solves many more problems than it creates. Shipping can be left to professionals, and no inventory to handle and more retail space is available. Exotic or over sized goods can be offered to international customers without worrying about importation costs or expensive storage. Manufacturers can also benefit from reduced shipping costs and more sales exposure of products.