| One of the greatest advantages of the Internet to | | | | being held in stock. The seller benefits on many fronts. |
| retailers and wholesalers is the ease of drop shipping. | | | | First, the seller does not have to have a large |
| Once a field in which only a great few could take | | | | inventory, thus achieving a positive way to reduce |
| advantage, drop shipping merchandise is now a reality | | | | overhead. This also reduces the amount of space the |
| for businesses of all types and of all sizes. Some of | | | | seller needs for inventory, which further reduces the |
| the most profitable online businesses, such as Amazon | | | | amount of funds that are outgoing. The seller can also |
| and Overstock.com, use drop shipping as their primary | | | | realize a much larger profit margin; by not purchasing |
| form of delivering products. Other businesses that | | | | or leasing storage for inventory and by not having to |
| exist both online and in brick-and-mortar, such as | | | | supply shipping, packaging, and all of the related costs, |
| Barnes and Noble, provide the options for drop shipping | | | | the seller can choose to lower prices and to realize a |
| in order to save money to both their customers and | | | | greater gain on items sold. |
| themselves. | | | | Customer satisfaction reaches an all time high with |
| A business owner who has never used a drop | | | | drop shipping. Customers wish to be offered a wide |
| shipping method might wonder exactly how it works. | | | | variety of products, but giving these options to |
| Basically, drop shipping allows a company to sell | | | | customers can be very time consuming and extremely |
| merchandise without keeping it in stock. A company, or | | | | expensive. In order to reduce overhead, giving |
| seller, can advertise the goods that are held | | | | customers the option of choosing from items that are |
| elsewhere, usually by a wholesale dealer, then have | | | | not held in inventory gives them far more options than |
| the product(s) directly shipped to the customer. Sellers | | | | most businesses could hope to offer. |
| can often work out special programs with wholesalers, | | | | Of course, eBusinesses are not the only ones that can |
| in which return labels are customized and inventory | | | | reduce overhead by drop shipping. It has long been a |
| sheets are printed in order to reflect the seller’s, | | | | practice of businesses that sell large ticket items, such |
| rather than the wholesaler’s, business name. This | | | | as furniture or appliances, to hold a showroom that |
| may cost a bit more, but it gives customers ease of | | | | consists of only a sampling of the items available. The |
| mind that they are working with a conscientious and | | | | customer then places an order and either travels to |
| reliable company. | | | | the destination of the item or, more commonly, waits |
| Drop shipping advantages both the customer and the | | | | for his or her purchased to be shipped. This practice |
| seller. The customer benefits by being able to find the | | | | can be upheld with any number of items, particularly |
| items they need easily while usually saving money, as | | | | those that are bulky or are difficult to come by. |
| the seller does not have to charge more for items | | | | |