Dropshipping

Written by Ava Grzegorczyk
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Dropshipping Today

As more and more businesses, including businesses that have been around for a long time, are establishing an Internet presence, the need for a fast, efficient way to move products is growing exponentially. Dropshipping has become the method of choice, especially for start-up companies that would not exist if they had to procure the extensive inventories it would take to handle the volume of business that comes with Internet sales.

A couple of processes have developed, based on a mode of moving products directly to consumers that has been around for a long time. In the past, when people ordered from major retailers, they often got their goods directly from a manufacturer who was notified about the order by the retailer. This allowed the retailer to avoid the costs of purchasing enough inventory to cover orders.

Dropshipping Options

This process left all of the risk with the manufacturer who had to store and insure the inventory. It still works pretty much the same way, except that the call for the shipment of a single order is now coming over the Internet, and the order can go out faster. At the same time, the manufacturer can get his payment almost instantly.

Another method of supporting Internet sales is one in which a single company creates a network of manufacturers from whom the online vendor can purchase goods. The same company also supports shipping the products directly to the consumer. This concept gives even small Internet vendors the clout of major retailers who place thousands of orders with the manufacturers. The manufacturers win because they get a high volume of orders, and the Internet vendors win because they get the low prices that high volume means.


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