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Quick Guide to Drop Shipping

/* Style Definitions */ table.MsoNormalTable mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400; Drop shipping is supply chain management system where the retailer (seller) is the middleman between the buyer and the manufacturer. For example, when a buyer pays for product from a retailer (seller) the buyer will receive the product directly from the manufacturer. The primary benefit of drop shipping is the retailer does not have to buy the product until the product is sold, allowing the retailer to reduce overhead costs by not having to store and process inventory. The biggest drawback from drop shipping is some manufacturers do not participate in this program, instead, only dealing with larger retailers with large inventory capabilities.