Drop shipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This means that the seller doesn't have to handle the product directly or maintain inventory.

 

Here's how it typically works:

1. Customer places an order: The customer makes a purchase from the online store or retailer.

2. Store forwards the order to the supplier: The store then forwards the order and shipment details to the supplier, often a manufacturer, wholesaler, or another retailer.

3. Supplier ships the product: The supplier prepares and ships the product directly to the customer, often under the store's branding or without any branding.

4. Store profits: The store earns a profit on the difference between the wholesale and retail prices, without ever handling the product.
    

Drop shipping offers several advantages for retailers:

• Low initial investment: Since there's no need to purchase inventory upfront, retailers can start their business with minimal capital.

• Reduced risk: Without inventory, there's no risk of being stuck with unsold products.

• Scalability: Drop shipping allows for easy scalability since there's no need to worry about managing inventory or warehouse space.

• Wider product selection: Retailers can offer a wide range of products without the burden of stocking them.

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You can reach us at info@chaosriderz.com.au if you have any questions