What is a Drop Shipper?

Answer:
Drop shipping is a technique utilized

by business in which the retailer does not keep merchandise on hand, or in stock, but transfers customer orders to wholesaler operations. The wholesaler then ships merchandise directly to the customer. The cost difference between wholesale and retail price is the profit which belongs to the original retailer.

Retailers that drop ship from wholesalers often take measures so this fact is not disclosed. One way they do this is by blind shipping. When an item is blind shipped, there is not a return address. A wholesaler may also include a packing slip or invoice which has the original retailer’s contact information and business logo printed on it. Retailers who sell in small quantities often utilize drop shipping in their business.


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