Drop-Shipping—Internet Retailers' "Little Helper"?
P.J. Jakovljevic - August 21, 2006

Drop-ship, or Keep in Store?

Many Internet merchants increasingly try to fill orders as they receive them, without necessarily having the relevant goods in their possession. The idea is for a retailer to take an order, which is then electronically transmitted or routed to the manufacturer (or distributor, or wholesaler), who drop-ships directly to the customer. Typically, the drop-shipper will package and ship the item, usually in a day or two (if the item is already manufactured and stored), and either the shipper or the retailer is responsible for shipping costs, depending on the arrangement between the two parties. In general, shipping is the function that performs tasks for the outgoing shipment of parts, components, and products, including packaging, marking, weighing, and loading for shipment...