Drop Shipment

Written by Ava Grzegorczyk
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What is a Drop Shipment?

If you shop in a retail store like Sears or WalMart, you are buying products that have been shipped in bulk quantities from a wholesaler. It is very likely that your size 10 blouse or your new hammer came in a box containing dozens of the exact same item. Large retailers can carry huge product lines, and they purchase with the general public in mind.

On the other hand, if you shop online for a specific product and order it, the product will still be shipped by a wholesaler, but it will be called a drop shipment. This is because your individual item will be taken from a bulk quantity of the same items and your package will be shipped by means of a shipping company such as FedEx or UPS rather than on the back of an 18-wheeler carrying hundreds or thousands of the same product.

Drop Shipment Speed

Wholesalers who drop ship to individual consumers can get the product to the consumer very quickly, especially if the vendor received payment for the product online. In essence, the item to be shipped is "dropped" within three to five days from the date of the order. The shipment, even though coming from a wholesale warehouse, has as a final destination a consumer's mailbox or front door.

Drop shipping is sometimes called direct delivery or convenience delivery because the product comes straight from the warehouse to the consumer. The convenience part lies in the fact that the consumer can shop from home any time day or night. When you add the component of competitive pricing, everyone from the manufacturer to the wholesaler to the vendor to the consumer benefits. More and more people are shopping online every single day, and they are changing the way retailers do business.

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