Skip to main content
debakshi gupta
CRM and English Skills expert
Asked a question last year

What is drop shipping?

Where am I?

In Safejob Community you can ask and answer questions and share your experience with others!

debakshi gupta
CRM and English Skills expert

This refers to an arrangement between a retailer and a manufacturer in which the retailer transfers customer orders to the manufacturer, which then ships the products directly to the consumer. When using a drop shipping method, the retailer doesn’t keep the products in stock. The order and shipment information is just passed on to the manufacturer. Sometimes referred to as direct shipping.

Sujai Adithya
Business Development and Banking & Financial Services Expert

Drop shipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the drop shipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.

The biggest difference between drop shipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders.

Drop shipping is an order fulfillment method that does not require a business to keep products in stock. Instead, the store sells the product, and passes on the sales order to a third-party supplier, who then ships the order to the customer.