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What is drop shipping?

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Question added by Fadi Jameel , Engineer , Juma Al Majid Est
Date Posted: 2015/06/04
Ahmed Ali Negm
by Ahmed Ali Negm , Workshop Engineer , Al-Bergasy Group

 

Drop shipping is a fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer.

Instead of purchasing a large amount of inventory, you simply partner with a drop shipping supplier and list their merchandise for sale. Then, once you receive an order you forward it to the supplier for fulfillment. The supplier will ship the product directly from their warehouse to your customer, and charge you only for the price of the shipped item.

Vipul Arora
by Vipul Arora , Ecommerce Operation Manager , Barakat Food & Bevrages

Drop Shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.

Imran Kazi
by Imran Kazi , SAP ANALYST , Joannou & Paraskevaides Pvt Ltd.

Drop shipping is a  technique in which the retailer does not keep goods in stock but instead transfers customer orders and shipment directly to customer.

rghdaa wagdy
by rghdaa wagdy , Operations Supervisor , Interlog International logistics

Drop shipping is a type of supply chain process ;in that the retailer don't store goods in his warhouse, but he divert clients orders to manifacture directly so that goods to be shipped from the manufacturer, it may be used for high valued _expensive production _ fast ruined _ big sized_ special equipment goods There always be contract between manifacture and retailer to determine percentage or fixed commission value for clients requests. Example: joe is client go to reputable cars dealar and asked for special manifactured lamburgini car.then the car dealer divert this request to lamburgini Factory to proceed with the order against10% of price as commission, and the factory make the car and drop shiping it directly to Joe when finished. Drop shipping also has risks you should consider like if the client placed order to retailer and when getting back to manifacture you can find the goods sold out or can't be processed or you can't trust when retailer collect money from client then nothing deliverd to client or even delivered but with fault or without return address, all these must keep in mind :) hope that helped you

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