What Does the Term Drop Ship Mean?
Drop Shipping Benefits
Not having to purchase large quantities of merchandise means you don't have to spend money storing inventory. The time and money you'll save by not having to prepare packages for delivery can allow you to focus your time and more of the business' resources on finding new products to sell and ultimately improving your bottom line.
Some Drawbacks
Drop shipping minimizes your risk of being stuck with inventory that no one wants to buy, but if a product is in high demand, you may find it difficult to fulfill every customer order -- which can lead to lost sales. The benefits of drop shipping usually come at a higher price than for online retailers who purchase large quantities of inventory from wholesalers, since wholesalers generally offer more competitive pricing.