Meaning of Drop-Ship

Drop-ship is common among the retailing business. It means a reseller instruct their wholesale counterpart, which may be located in a duty free zone, to ship out orders according to the reseller and delivery directly to their customers. The reseller does not actually take the job of stocking, packaging and shipping.

Drop-Ship on the other hand means buying products in bulks and get a discount from it, then retailing it one at a time to make a profit. This is the conventional way of retail business.

With the internet kicking in around the world, drop-shipping does make sense after all. Most drop ship services only exist hand in hand with the internet, so no one will know that you don’t keep an inventory on-hand. Because you won't be able to sell products with your conventional store front without products.