Drop Ship

Posted in Operations and Supply Chain Terms, Total Reads: 1336
Advertisements

Definition: Drop Ship

Drop Ship is the technique in which the retailer passes the customer orders to the wholesaler or manufacturer who completes the order directly. Thus the retailer does not have to stock the goods at his retail store. The retailer takes a percentage of the goods price as fee for this facility.

Generally, the retailer earns its profits from the difference between the manufacturer selling price and the customer-buying price. But this concept is not followed in drop shipping as the goods are not with the retailer but acts only as an ordering intermediary.


Search & Explore : Management Dictionary

Browse definitions and meaning of more concepts and terms similar to Drop Ship. The Management Dictionary covers definitions and overview of over 7000 business concepts from 6 categories.



Share this Page on: