With the advent of online marketing drop shipping has become a popular mode of conducting business. This is essentially a new method of supply chain management. In this technique a retailer does not keep goods in stock. He just procures orders and transfers the details to either the wholesaler or the manufacturer. The onus of shifting the goods to the customer then lies with the manufacturer. The difference in the retail price and the wholesale price help determine profits.



Drop shipping helps one start business from home. Such business requires very little set up expenses. So they can be very profitable. Nowadays small retailers cannot handle bulk orders either due to space or financial constraints. For them this kind of marketing is extremely useful and handy for them. Even buyers find it easy, because when building something on a large scale like steel buildings the retailer will have the building shipped to the building site of the buyer, straight from the site of the manufacturer.

A seller can list items that are not in his own possession, if he follows the auction websites policy on pre-sale items. Most sellers on auction sites, like eBay, prefer drop ship to other modes of dealings. Many sellers enlist items as new and ship them straight from the manufacturer to the highest bidder. Drop shipping solutions have helped to make the playing fields more level than ever before.

Private label drop shipping is a trend which is catching up fast. In this type of business, a wholesaler manufactures an item after getting orders from a retailer and delivers it to the customer. Items for private label drop shipped items may vary from t- shirts wit logos to simple key chains and even food supplements.

Drop shipping solutions offer benefits like:

?Chances of duplication gets eliminated altogether.

?Shipping costs needs to be borne by the customer. This reduces investments by retailer.

In the days ahead, this technique will become the only mode of supply for bulk purchase.