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Shvoong Home>How To>Money & Business >Dropshipping, How to Operate. Review

Dropshipping, How to Operate.

Personal Experience Review   by:TradeHong    
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As a retailer in China, I came accross a new item "dropshipping"
This is a trade term using the business between retailers and wholsalers.
Usually customers are often referred to provide "dropshipping" service. So what is dropship? and how to operate it? What the advantages and disadvantages of it? let me give you a detail explanation.
Sometimes the retailers do not want to have the goods stock, but their customers order. At this time, retailers transfer the shipment infomation to the wholesalers, the wholesalers ship the items directly to the end customer. the retailers just earn the price difference of retail price and wholesale price.
Now the world has entered the information age, especially the using of e-commerce. Dropship has been widely used by a mount fo e-tailers in this e-commerce area.
As for how to do Dropshipping, its relationship with the general operation of the wholesale business in no particular difference. Typically, the volume of wholesale orders, you will FCL FCL sent to each other, but when using dropshipping, when the other party may ask you to 10 products sent separately to 10 different client address and request a receipt (Return Address ) write on each other the required address. In this way, you will spend here Shipping to differ, but usually a single product directly to end customers, generally will not use this delivery method of shipping.
For foreign business, if you use dropshipping directly shipped to end customers overseas, then the end customers may face tariffs and other issues, but this is not you need to deal with, but by retailers handling, you only according to the requirements of retailers to ship on it. Here is the United States should make clear that the small package business will not be charged customs duties.
Published: July 28, 2010   
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