By doing this, it eliminates the costs of maintaining warehouses – or even a storefront – purchasing and storing inventory, and employing necessary staff for such functions. The seller is responsible for marketing and selling the product, but has limited control over product quality, storage, inventory management, or shipping. Instead, in a form of supply chain management, the seller transfers the orders and their shipment details either to the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer. ( March 2023) ( Learn how and when to remove this template message)ĭrop shipping is a form of retail business in which the seller accepts customer orders without keeping stock on hand. Please help improve this article if you can.
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