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Introduction to drop shipping in ecommerce business

Updated on July 7, 2010

Drop shipping simply defined as a technique in which the retailer has no goods in stock, and on the same time transfers the customer orders and shipment details to a manufacturer or a wholesaler. When details are transferred to a manufacturer, the goods are directly shipped to the customer who purchased them. In this case the retailer makes his profit with the difference between the wholesale and retail price.

If you are a retailer and want to use drop shipping for your ecommerce business you will certainly obtain a nice profit. As a retailer, you will be having full control over where the product is shipped at all times. With drop shipping in particular, you no longer need to worry about the goods you have in stock. Basically, you should never run out. When a customer comes to you for purchasing any of your particular items, you are in charge of transferring the customer’s orders and shipment details to the manufacturer or wholesaler.

There is no miscommunication between you and your customer. Your customer should never be calling you asking where their product is, or why they haven’t received it yet. Drop shipping guarantees that the product is on its way to the customer directly. When they receive it, you gain profit. It is as simple as that.


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