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Drop shipping System

oboloo Glossary

Drop shipping System

Drop shipping is an order fulfillment system that uses a third-party logistics provider to fulfill customer orders. In a drop shipping system, the retailer does not keep any inventory but instead forwards their customer’s order to a manufacturer or wholesaler who then ships the product directly to the customer. This allows retailers to have access to products they may not otherwise have, with minimal risk and overhead costs. With drop shipping, retailers can focus on marketing and selling while having access to products from various producers without needing to manage inventory, providing an efficient and cost-effective way to reach customers.

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