What is Drop Shipping?

How Drop Shipping Works

How Drop Shipping Works
Have you ever asked yourself “what is drop shipping?” For those of you who have wondered what exactly it is, you’re not alone. Merriam Webster defines drop shipping as both a transitive and intransitive verb involving the shipment of goods. It is the action of shipping “goods from a supplier directly to a customer.” The definition may clear up what drop shipping is, but perhaps the process, advantages, and risks of employing such a practice may still be a bit unclear. After investigating answers to these questions and identifying the advantages and disadvantages you can determine if receiving or sending drop shipped goods is the right option for you.

In-Store and Online Sales
Ever posed the question “what is drop shipping”? Well, after scouring the Internet to learn more you may discover that you can find a physical store front or an online presence to buy from. For customers who prefer shopping from a physical location, you may discover that the store you shop from has several display items that can be handled. These items are not generally for purchase, but rather they represent products that a person could buy. This allows customers to see and feel an actual product that might similar to the one that will be drop shipped to their homes. There are, however, retailers that do not have display items, or who may have some but not all items for sale on display, but usually they have catalogues or websites that you can refer to in order to get a better idea of what might be available for purchase.

The Process
When asking yourself “what is drop shipping?” you may also wonder exactly how it works. While it can vary from business to business, drop shipping always involves the shipment of goods directly from the manufacturer or supplier right to the customer. The definition makes the process sound simple, and for the most part it is. It can be separated by business type and includes:

· Small business. Small businesses usually sell products to the public in smaller quantities than large companies do. When they employ the use of drop shipping, it is almost always for a single order with a large volume of product. Instead of ordering the product and having it sent to the small business and then having the customer come get it, the small business can order the product and ship it directly to the customer’s residence. Items that are large and have high dollar values are also shipped direct pretty commonly in the small business world. Steel buildings, for instance, can be purchased at a local retailer’s store and then drop shipped directly from the manufacturing facility to a construction site.

· Custom products. Private label drop shipping is becoming more and more popular. It allows retailers to have products custom made and then shipped directly to their customers. Anything from t-shirts, shoes, and key chains can be made at a manufacturing facility with custom colors, logos, and graphics and then shipped to the party that ordered them. Vitamin and nutritional supplement companies can provide their customers with unique formulations and have them shipped directly from the manufacturer to the customer.

· Auctions online. What is drop shipping? Well, if you’ve ever purchased from eBay or another online auction, you may have had items drop shipped to you. In the realm of online auctions, drop shipping is used a lot. If, for example, you see a listing for a new, never-been-used item the seller has available, a retailer or wholesaler often send the products directly to the customer. What’s in it for the seller? The profits that are left over. The seller capitalizes on the sale by taking the difference between the winning bid and the wholesale price. He also has to subtract merchant and selling fees that might be passed on to him by the online auction website.

Drop Shipping Advantages
Health Stores Direct Shipping, a leader in drop shipping, houses over 40,000 products that you can choose from online. The good news is that you can have any one of them shipped directly to your home. Skip the retailer, save some money, and buy direct from the source with Health Stores Direct Shipping.

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