Dropshippers
Drop shipment or drop shipping is a type of retailing
where the retailer does not keep goods in stock, but instead passes the
customer's order and shipment details to the wholesaler,
who then dispatches the goods to the customer directly. The retailer
makes their profit on the difference between the wholesale and retail
price.
Some retailers may still keep "show" items on display in
stores, so that customers can inspect an item similar to those that
they can purchase. Other retailers may only provide a catalogue or
Internet presence.
Drop shipping can occur when a retailer (who
typically sells in small quantities to the general public) receives a
single large order for a product.
Rather than route the shipment through the retail store, the retailer
will arrange for the goods to be shipped directly to the purchaser.
The
book selling industry provides an example. Book retailers typically
sell single copies of books to the general public. But a store may
receive an order for, say, 50 copies of a book from a company that
wishes to buy the books for their employees, clients, or stockholders.
The book retailer will arrange for the wholesaler to deliver the books
directly to the company.
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