Dropship Company

Written by Ava Grzegorczyk
Bookmark and Share

What is a Dropship Company?

If you're thinking about becoming an online vendor, you're probably wondering how to get your goods from the manufacturer to your customers. Online selling is not like traditional retail selling. You may find that your website hits will far exceed the amount of inventory you can afford. The answer is a dropship company.

Basically, when you use a drop shipper, you are generally working with a wholesale merchandise dealer who will manage your shipping. The process is fairly simple. The wholesaler/dropshipper will ship each individual order to your customer. This allows you to have minimal or no inventory on hand. It also means that your money is not tied up in inventory you may not move.

Dropship Company Advantages

When you run your business using dropship services, the wholesaler maintains the inventory and assumes all the risk. You sell your products and have the payment in hand before you ever even order the shipment from the dropshipper. You, in turn, may pay the drop shipper when you place the order so that, when the product leaves the drop shipper's warehouse, everyone has already been paid.

The cash flow situation is great, especially for the vendor whose overhead is minimal. Many online vendors have made a lot of money without ever carrying any inventory. That also means that administrative costs are low. A single individual can often run an online company doing a substantial amount of business right from her own home. Drop shipping is often a major contributor to that success.


Bookmark and Share