What Is Drop Ship Fulfillment

Drop shipping is a process of product fulfillment that occurs directly from the manufacturer or wholesaler to the customer when the order is placed on a third party retailers website or over the phone circumventing the traditional retail supply chain.

What is drop ship fulfillment. As in retail business the majority of retailers make their profit on the difference between the wholesale and. Youll notice that dropshipper isnt one of the players listed in the supply chain. While drop shipping is a valid business model its important to know the difference.

3pl stands for third party logistics. Basically drop ship fulfillment allows companies to run their business without having to manage a retail store or handle physical stock. Drop ship fulfillment or drop shipping is a technique thats used in the world of fulfillment management.

Drop shipping can also make it more difficult to standardize shipping and handling costs for a sellers customers if they use various suppliers to drop ship orders. While drop shipping suppliers store your goods for you and dont charge you for that order fulfillment companies store them for you but do charge you for the shelf space occupied by your goods. If you own your own inventory and youre looking for another company to handle your order fulfillment you dont need a drop shipper.

What you need is a third party order fulfillment company. Because any of the threemanufacturer wholesaler or retailercan act as a drop shipper. Dropshipping is a retail fulfillment method where a store doesnt keep the products it sells in stock.

As a consequence costs may be somewhat higher than when you run a drop shipping business. Dropshipping is a service not a role. Drop shipping and order fulfillment are not the same thing.

Instead of keeping merchandise in stock the retailer sends customer orders and other shipping. Printful is an online drop shipping and custom printing fulfillment service. Instead when a store sells a product using the dropshipping model it purchases the item from a third party and has it shipped directly to the customer.

What is 3pl fulfillment. The retailer or vendor is someone like amazon ebay or other e tailers. This might sound confusing but drop shipping is actually a form of order fulfillment.