• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Eradium logo light background

Eradium

Omnichannel Commerce Solutions for Fast Growing Brands!

  • (416) 225-1057
  • Contact Us
Eradium Logo
  • Services
        • Design and Development
          • Omnichannel and Integration
          • eCommerce Platform Migration
        • Digital Marketing
        • Emerging eCommerce Technologies
        • Care and Optimization
  • Industries
        • Industries – B2C vs. B2B
        • B2C (Business to Consumer) eCommerce Solutions
        • B2B (Business to Business) eCommerce Solutions
  • Technology
        • Technology Platforms
        • eCommerce Technology Platform Selection
  • About Us
  • Blog
  • Library
  • A
  • B
  • C
  • D
  • E
  • G
  • H
  • I
  • M
  • O
  • P
  • R
  • S
  • V
  • W
You are here: Home / Glossary Definitions / Drop Shipping

Drop Shipping

Eradium omnichannel glossary drop-shipping

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock but instead transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price, but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer. (1)

Drop Shipping  Example – Amazon

Amazon is a hybrid of drop shipping and fulfilling its own product shipments.  If you see that an order is coming from a third party supplier and not Amazon.com, then they are utilizing the drop shipping technique. (2)

Eradium omnichannel glossary cross - Amazon Logo

References

  1. Drop shipping, https://en.wikipedia.org/wiki/Drop_shipping
  2. 5 Examples of Companies That Use Drop Shipping, http://www.findexamples.com/five-examples-of-companies-that-use-drop-shipping/

June 10, 2016 by Anna Battrick

Primary Sidebar

Search

Share

Recent Posts

  • 3 Omnichannel Strategies Any Size Merchants Must Adopt in 2023
  • 10 Essentials eCommerce CX (Customer Experience) Checklist
  • 7 Essential Features of a B2B eCommerce Website
  • 3 New eCommerce Trends For 2022
  • 3 Pillars of eCommerce Fraud Prevention

Archive

Categories

  • Artificial Intelligence
    • Machine Learning
  • Big Data
  • eCommerce
  • Mobile
  • Omnichannel Marketing
  • Strategy

TAGS

Cloud Computing Data Science e-commerce sites best practices Ecommerce conversion rate eCommerce Email Marketing Best Practices Email Marketing Fashion eCommerce Best Practices Instagram Lean Data Analytics MailChimp Mobile Commerce Mobile Marketing online marketplaces Privacy Retail Marketing Retail Technology SEO Shopping Experience Social Media Marketing Supply Chain Management The Internet Of Things

Footer

Contact Us

contact@eradium.com

416-225-1057

400 Applewood Crescent, Unit 100

Vaughan, Ontario, L4K 0C3

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
Eradium BBB Business Review

Services

  • Design and Development
  • Digital Marketing
  • Care and Optimization
  • Emerging Technologies

Quick Links

  • About Us
  • Contact Us
  • eCommerce Library
  • Blog

Recent Articles and Posts

Recent Posts

  • 3 Omnichannel Strategies Any Size Merchants Must Adopt in 2023
  • 10 Essentials eCommerce CX (Customer Experience) Checklist
  • 7 Essential Features of a B2B eCommerce Website
  • 3 New eCommerce Trends For 2022
  • 3 Pillars of eCommerce Fraud Prevention

© 2014–2023 Eradium   Privacy Policy

Request Free Consultation
What email address would you like us to use?(required)
Your Name (required)
What's your organization's name?(required)
What phone number would you like us to contact you on?(required)
How can we help you?