Quick Scoop: What Is Drop Shipment?

Drop shipment is a retail method where the seller does not keep products in stock. Instead, when a customer places an order, the seller sends the order to a supplier, and the supplier ships the item directly to the customer.

How it works

  1. A customer buys from your online store.
  2. You forward the order to a supplier or manufacturer.
  3. The supplier packs and ships the product to the customer.

Why people use it

  • Lower upfront costs, since you do not need to buy inventory in advance.
  • Less need for storage or warehouse space.
  • Easier to focus on marketing and sales instead of packing orders.

Main trade-offs

  • You have less control over product quality and shipping speed.
  • Profit margins can be smaller than with traditional retail.
  • Rules can vary by platform and location, especially for taxes and seller policies.

Simple example

If you run a phone-accessories store and someone orders a case from you, you take the payment, then your supplier sends that case straight to the buyer. You never touch the product yourself.

TL;DR: Drop shipment is a business model where you sell products without storing them, and a supplier ships orders directly to your customers.

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