Submitted by Southern_Heron_9601 t3_z95p81 in explainlikeimfive
Akalenedat t1_iyf4889 wrote
Dropshipping means the seller has no stock in their possession. You order from them, they turn around and order it from the manufacturer to be shipped to you.
It's good for the dropshipper because they're making a sales markup with minimal overhead costs - no need to staff or rent a warehouse if you have no stock.
It's bad for the customer because now you're waiting twice the time for two different businesses to process your order, paying a retailer markup for no good reason, and you don't even know whether the manufacturer has something in stock and ready to ship when you order from the middleman.
The only time dropshipping is good for the customer is a scenario where the manufacturer does not do direct to consumer sales, only wholesale, the dropshipper has less markup than a regular retailer, and the manufacturer actually does have the product in stock.
NotMyRegularUID t1_iyf5sxu wrote
Wrong on so many levels, but explain how it’s 2x the order processing time. They just send the order electronically to a warehouse they don’t own.
And are companies that list their products on Amazon but fulfill the order themselves bad companies?
If they are fulfilling by Amazon, isn’t that kind of like drop shipping? 🤦🏻♂️
Akalenedat t1_iyf7g2n wrote
>Wrong on so many levels, but explain how it’s 2x the order processing time. They just send the order electronically to a warehouse they don’t own.
Sure, if the dropshipper is an active enough business that they spend money on automating the process. Otherwise, you're waiting for the dropshipper to confirm order info, then send the order to the wholesaler/manufacturer, then waiting for the actual shipper to process the info and pick the order.
>And are companies that list their products on Amazon but fulfill the order themselves bad companies?
I mean, yeah...kinda. A huge chunk of Amazon is fake listings and dropshippers running low cost storefronts to trick people into buying knockoff products.
>If they are fulfilling by Amazon, isn’t that kind of like drop shipping? 🤦🏻♂️
If you're buying through Amazons storefront, then no, it's not.
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