I you are selling any form of physical product online, you would have no doubt encountered the term dropshipping. Dropshipping quite simply is a supply management structure where the products are shipped by the manufacturer directly to the customer and the retailer earns his profit through a markup of the dropshippers wholesale price....
This is ideal because in effect the retailer is not burdened with the storage and the shipping of the merchandise. Since there are less stages in the process there is less margin for error, the merchandise is sent directly to the customer by the dropshipper....
The dropshipper can be the manufacturers themselve although it is more usual for this to be handled by a specialist firm. There are two methods of doing business used by dropshippers..