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LSDefine

Simple English definitions for legal terms

drop-shipment delivery

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A quick definition of drop-shipment delivery:

Drop-shipment delivery is when a company sends their products directly to the customer instead of sending them to a middleman first. This means that the customer gets their order faster and the company saves money on shipping costs. Sometimes, if a middleman is involved, they may still get a portion of the profit from the sale.

A more thorough explanation:

Drop-shipment delivery is when a manufacturer sends goods directly to the consumer instead of sending them to a wholesaler first. The wholesaler may still receive a portion of the profit if they take the order.

  • A customer orders a pair of shoes from an online store. The store doesn't have the shoes in stock, so they contact the manufacturer who ships the shoes directly to the customer.
  • A small business owner orders a bulk shipment of t-shirts from a manufacturer. The manufacturer ships the t-shirts directly to the business owner's customers as they place orders.

These examples illustrate how drop-shipment delivery works. Instead of the manufacturer sending the goods to a middleman (wholesaler), they send them directly to the end consumer. This can save time and money for both the manufacturer and the consumer.

drop letter | drop shipper

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