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What Is Drop Shipping?

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What Is Drop Shipping

 

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.

 

Benefits of Drop Shipping

 

Two significant benefits of drop shipping are the elimination of upfront inventory and a positive cash-flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a credit card or credit terms. Therefore, there is a period of time in which the seller has the customer’s money, but has not yet paid the wholesaler.

 

Drop shipping also eliminates some duplication of effort, since only one warehouse will pick, pack and ship the product. This approach can reduce total inventory management and shipping costs. These cost reductions can subsequently reduce the price to the consumer.[1]

 

Our Drop shipping program is designed to offer you access to a product line without the hassle of large investments and worrying about shipping.  Our goal is to offer your store a product line that can be a profitable addition to your business.

 

In summation, you send us the order. We print the shirts and ship them out to your individual clients with a fast turnaround and excellent quality and customer service. Call 435-623-2382 or go online today to see what customshirtprinting.net has to offer your business and your clients.

 



[1] http://en.wikipedia.org/wiki/Drop_shipping

 What Is Drop Shipping?

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