Dropshipping

Dropshipping! is defined simply as having a middleman perform an intermediary role between a regular transaction involving a buyer and a supplier of merchandise. This 'middleman' is a reseller who is marketing products on behalf of the supplier providing the dropship service. At the point of the middleman concluding a sale with a buyer, the dropshipping company handles all the fulfilment and ensures the buyer receives their ordered merchandise.

Dropshipping! is risky business; not least because as a buyer you have to be absolutely certain that your supplier won't let you down once orders start to roll in as your reputation depends on it.

Dropshipping! (or Direct Fulfilment) is a simple supply chain management system which enables the retailer to advertise their suppliers products without having to physically keep goods in stock. Instead once the customer has placed an order, the retailer will forward order details to the wholesaler, who then ships the goods directly to the customer. The retailers make their profit on the difference between the wholesale and retail price.