oboloo Glossary

Drop shippers

oboloo Glossary

Drop shippers

Drop shippers are companies or individuals that facilitate the sale of goods without actually storing any inventory. They’re often referred to as “middlemen” because they provide a link between a consumer and wholesaler or manufacturer. A drop shipper will agree to fulfill orders from customers, using the wholesaler or manufacturer’s inventory of products. This allows businesses to offer a diverse selection of products without having to establish a physical store or stockroom. Furthermore, it reduces the risk of tying up capital in unsold merchandise, since only products that have already been sold will be shipped. For many entrepreneurs and small business owners, drop shipping is an ideal entry into the world of e-commerce.