Drop shipping is where the seller accepts customers’ orders but does not keep goods sold in stock. Instead, it transfers the orders and their shipment details to either the manufacturer, a wholesaler, another retailer, or a fulfilment house, which then ships the goods directly to the customer. As such, the retailer is responsible for marketing and selling a product, but has little or no control over product quality, storage, inventory management, or shipping. This eliminates the costs of maintaining a warehouse or even a brick-and-mortar storefront, purchasing and storing inventory, and employing necessary staff for such functions. As in any other form of retail, the seller makes their profit on the difference between an item's wholesale and retail price, less any pertinent selling, merchant, or shipping fees accruing to them.
There are many advantages in using Cloud9 Fulfilment over a drop shipping model. Firstly, it allows the vendor to retain a great deal of control over the sales process, marketing, and distribution. Margins are much higher using fulfilment then are available in the drop shipping model. Keeping track of stock is simple using the Cloud9 portal, so you can always stay a step ahead of the game. Shipping is made simple with Cloud9, using a variety of premium carriers to deliver excellent service for your customers.
