What is Drop Shipping?

Drop shipping

Drop shipping is a supply chain management method in which the retailer or merchant does not actually keep products in stock but instead organise for ship the products from the manufacturer or wholesaler directly to the customer. In this method, the merchant doesn’t see or handle the product and is only charged a price per shipped item.

 

Actually, Drop shipping involves following process:

  • Customer places order on retail website or store front.
  • Order is forwarded to wholesaler along with payment information
  • Wholesaler make the ordered product packed and ships it to the customer, with the retailer's contact details and branding on the delivery docket
  • Customer receives the product ordered
  • the retailer handles further enquiries or returns, if required

 

Benefits of Drop shipping

  • Saves time and money
  • Easy to get started
  • Wide Selection of Products
  • Flexible Location
  • Easy to scale

 

 

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

 

Types of Insurance Documents.

What is VACIS exam in US import customs clearance

When can an exporter release bill of lading from shipping company?

When does exporter get EP copy of shipping bill after customs clearance

Terms of Payment in Export and Import

Terms Used in Marine Insurance

 The difference between FCA and CIP terms

How to export from India to Dominica?

How to export from Cote d’Ivoire?

How to Import to Cote d’Ivoire?

How to import to India from Cote d’Ivoire?

How to export from India to Cote d’Ivoire?

How to export from Comoros?

How to Import to Comoros?

How is IGST calculated under Imports?

How is IGST rate on imports treated?

GST and e-Commerce Business, FAQ

Definition of E-Commerce under GST

TDS under GST, Frequently Asked Questions

Does Interest attract on GST Tax payment delay?

Mechanism of Payment of GST tax in India

Levy of late fee for GST Tax returns filing in India

Notice to GST return filing defaulters

When to file Annual Return of GST online?

What is the GST rate on Mysore painting, Rajasthan painting, Tanjore painting?

Is GST registration required for homestays providing accommodation through an ECOs, below threshold limit

Compliances from ITC reversal point opting for composition levy under GST

Anti-Profiteering Measures to Benefit Consumers under GST

GST rate on Instant Coffee

 

 


Comments


YUSSAFI TINWALLA: am in Exports, 16 yrs of exp, I want to start my own small export business , which commodity is preferable for Export on initial basis

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers