![]() ![]() The product is not only procured or manufactured by a third-party but also shipped directly to the customer as well. Drop shipping is a natural fit for companies dealing in ecommerce or planning to generate sales via the web.Īs you would have probably guessed by now, drop shipment scenario saves the organization from production, inventory management, logistics and handling aspects. The other steps associated with procurement, warehouse management and logistics execution is done by the third-party which then raises an invoice for its services. Thus, the company which received the order only executes order confirmation and invoicing aspects of the transaction. ![]() Drop shipping relates to a case where the order placed by a customer is transferred to a third party for fulfillment. ![]() To be able to understand the configuration behind drop shipment, we need to first understand the relevance of this concept in the backdrop of today’s digitally connected world. ![]()
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