Drop Shipment

Tags: Glossary

An order fulfillment method where seller gets customer orders without keeping the stock on hand.

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What is drop shipment?

Drop shipment is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers its customer’s orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.  


This is done to reduce the time and cost associated with inventory management and shipping. 

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