Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer.
Read more about Drop Shipping: Procedure, Developments, Benefits, Risks, Related Concepts
Famous quotes containing the words drop and/or shipping:
“The pipe, with solemn interposing puff,
Makes half a sentence at a time enough;
The dozing sages drop the drowsy strain,
Then pause, and puff—and speak, and pause again.”
—William Cowper (1731–1800)
“Talk of a divinity in man! Look at the teamster on the highway, wending to market by day or night; does any divinity stir within him? His highest duty to fodder and water his horses! What is his destiny to him compared with the shipping interests?”
—Henry David Thoreau (1817–1862)