multilingual informations about Drop Shipping and Wholesale
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What is drop shipping?
Drop shipping is a product delivery method in which the seller (retailer) accepts payment for an order, but the customer receives the product(s) directly from the manufacturer. In a drop shipping arrangement, the retailer acts as a middleman between the manufacturer and the customer. His profit in the transaction is the difference between the wholesale and retail price of the items sold.
Drop shipping is very beneficial to smaller retail shops, internet-only storefronts and those who primarily use catalogs for sales. Customers of these outlets don't always expect to walk out with their purchases, so a slight delay between ordering and drop shipping is not a drawback. A representative item may be displayed on the store's shelves or pictured in its catalog, but the actual product purchased may be sitting in a factory's warehouse 3000 kilometres away.
One of the biggest problems drop shipping addresses for retailers is inventory control. In a traditional retail store setting, products are ordered in bulk from the manufacturer and must be stored in a secure area until displayed. This means maintaining a proper storage area, hiring employees to handle the stock and investing in security measures to prevent theft. With drop shipping, the retailer does not keep a large inventory on the premises. More space can be devoted to displays, and fewer employees need to be hired to handle shipping, receiving, inventory and security.
Many manufacturers also embrace the idea of drop shipping, because the retailer essentially becomes an additional salesman. Delivering large orders or bulky items to a retailer costs money in handling and fuel. With drop shipping, the manufacturer can use inexpensive shipping methods (UPS, FedEx, local delivery companies) to get the ordered product to the customer directly. Manufacturers also own much more secured warehouse space than most retailers, so their products remain safe until ordered.
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multilingual informations about Drop Shipping and Wholesale