Definition of Drop Shipping

In this section you will find the definition of Drop Shipping as well as its pros and cons.

Drop shipping, dropshipping, drop-shipping, drop shipper, dropshipper and drop-shipper are different spellings you will find. The correct spellings are drop shipping and drop shipper.

Drop Shipping involves selling goods that you do not stock in your warehouse.
The seller has the goods delivered directly to the buyer by a third party, known as the drop shipper.

The seller can be an online store or a reseller, such as a store owner, distributor or wholesaler, with a physical workspace. What all sellers who use drop shipping have in common is that they are selling a product that is not physically on the premises. The seller must therefore forward the order to the drop shipper, who will prepare and ship the goods directly to the buyer on behalf of the seller. Hence, in order to drop ship, the drop shipper must physically have the stock on hand.

Drop shipping is quickly expanding, as it allows the seller to offer a full and vast array of goods without the management and expenses that come with storing inventory.

While more and more businesses are using drop shipping, it is most prevalent in North America. The practice originated in the United States and Canada. In other countries, such as France, Spain, England, Germany, Australia, Japan and China, drop shipping is still seldom used. Going forward, however, there is no doubt that drop shipping will continue to expand in Europe, Asia, South America and all the other continents.

In an increasingly complex and competitive business world, drop shipping allows sellers, regardless of their size, to offer as many products as they wish. Drop shipping, though very appealing and brimming with potential, requires the seller to invest a great deal of resources in follow-up and management for each order. This is where B2B Console comes in, freeing the seller from all the management that drop shipping entails.

Our platform’s interface manages every order from start to finish by automating decision-making and follow-up. B2B Console monitors the order from its inception to its shipment. B2B Console improves the drop shipping process by simplifying and automating the relationship between the seller and drop shipper.

For more information on B2B Console’s functional capabilities, please visit our retailers or suppliers section.

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