What is dropshipping?
Dropshipping or drop shipment is a type of retailing where the retailer does not keep goods in stock, but instead passes the customer's order and shipment details to the wholesaler, who then dispatches the goods to the customer directly. The retailer makes their profit on the difference between the wholesale and retail price.
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 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-shipment can also be an advantage in some transactions as it (can) obscure the actual shipper from the final receiver, thus preserving a middleman's role by preventing direct communication/awareness between the original seller and final buyer, without requiring a middleman to bear the costs/delay in physically taking in the goods, repackaging, relabeling, etc.
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.
Our guarantee when we do dropshipping:
3.We won't attach any information of our company in the goods or the package.