Drop Shipping for Internet Retailers

By Alexandra Miller

Drop shipping refers to the transfer of merchandise from a wholesale distributor to a retailer’s customer directly. Primarily used by internet retailers, products are shipped to customers straight from the supplier’s warehouse inventory. Not only does this ensure that the online retailer with not be stuck with a surplus of unsold merchandise, it also saves them a substantial amount of time and money. Using a drop shipping service eliminates storage, packaging, and shipping costs and time allotments; since the products are shipped directly from the supplier, they take care of those expenses.

Drop shipping for product sourcing is not only convenient, but often essential for small business owners just starting out or looking to expand their retail company. Most large wholesale distributors would be very difficult for small and home-based businesses to establish business relations, let alone actually work with one. Drop shippers have created and maintained business liaisons with the nation’s largest wholesalers and manufacturers, allowing retailers access to numerous products.

This service is also expedient and convenient for internet retailers because they have access to all the products available in one useful location online. Members can browse, search, find, list, order, and track products all through a catalog directory situated entirely on one website.

Prices are competitive because most drop shipping services make money through membership fees rather than merchandise sales. This is significant for retailers because it means drop shippers do not take a cut from any of their sales and membership fees are the same whether someone purchases one product or a thousand.

Drop shippers can save retailers money and time and most importantly, lessen the risks of online businesses. This affords internet retailers the luxury of diminished business risks and more time and money to market and sell their products and merchandise.