Drop Shipping Information

What is Drop Shipping?

Drop shipping is a technique in which a retailer does not keep goods in stock, but instead passes orders for products to a wholesaler who maintains an inventory and ships the ordered product directly to the end customer. "Blind drop shipping" or "blind shipping" is when the merchandise is shipped without return address or shipper information. A more personalized form of drop shipping, referred to as "private label shipping," includes the original retailer's information as a return address on the package and on documentation included with the merchandise.

Precision Roller offers "private label shipping". Upon request, your purchase can be shipped directly to a third party you specify, with return address information you supply. This information will show on the return package label as well as the packing list. An example is shown on the right (click the image for a larger view).

There are many benefits to utilizing drop shipping or private label shipping. As a retailer, three important benefits include:

• No upfront inventory purchase costs, allowing for a positive cash-flow accounting system
• No inventory to purchase, maintain or pay tax on
• More flexibility in products offered - you can offer new lines without major startup costs or risks

As the end customer, some of your main benefits are:

• You keep a relationship with your favorite retailer, who can drop-ship multiple lines of product, rather than with each individual product retailer
• Your retailer can focus on customer service or other service offerings, rather than on storage and maintenance of inventory
• Your retailer has less overhead costs in general, so they can offer you better prices than otherwise