Traditional business of yesteryears has changed its shape and format. Many changes have occurred in the traditional form of business which has changed the concept of doing business. It has further forced the market strategist to design and formulate new marketing policies for the business to prosper. One of such changes is the development of online business. It has further enhanced the concept of virtual business that is business without the physical presence of the company in the place where it wants to do business. Drop shipping is another the term which has taken the concept of virtual business to second level. It is term which means that the retailer deals with the customer and books the order of the customer without making the merchandise available in the stock. It passes the order of the customer to the whole seller or the manufacturing company and the supply is made to the customer directly.
Benefits of drop shipping
Maintaining large range of products: By this concept of business one can maintain more number of products in his inventory as all he has to do is to keep in touch with the whole seller or the manufacturing company of the product and place the order to the company, when the order comes to the retailer, and get the product delivered to the customer address directly.
Reduces the launching time of the product: The time taken from the launching of the product to the availability of the product at the whole seller point is some times more than a week or may be a month. In case of dropshipping, retailer can have the product launched in his store simultaneously when it is launched on the website.
Fulfillment centers are the places which stock the product for the clients and deliver the product to the destination as instructed by the client.