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What Is Drop Shipping?
Although "drop shipping" does
involve the shipping and mailing of
products, overall it is more a method of
retailing that has gained popularity
with the advent of online shopping.
Basically, drop shipping is an
arrangement that a retailer makes with a
wholesale distributor. The retailer
sells the product, and the
wholesaler then ships it to the customer
complete with the retailer's label on
the package. This arrangement benefits
the wholesaler who gains retail outlets
and sales of a product, as well as the
retailer who collects a percentage of
the sale, but doesn't have to worry
about shipping or carrying an inventory.
The advantages of drop shipping are:
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