02-05-2006, 10:53 AM
Quote:Q: I have a small, organic dog biscuit company, primarily wholesaling in the Bay Area. I've recently had interest from several companies doing Internet business, all of whom asked if we drop ship. I assumed they were asking if I would ship directly to their customers, and I said yes. Then they asked what my rates were. This was confusing to me because we do a fair amount of shipping, and we just charge the standard UPS rates. What do I need to know about drop shipping?
A: Drop shipping refers to a business model where a retailer maintains no inventory, and instead asks his or her suppliers to ship items directly to customers. This is a convenient strategy for retailers, because they don't have to pay for warehouse space or invest in merchandise that may not sell quickly. And many online retailers -- especially small, home-based businesses on eBay -- work this way...
full article: http://www.sfgate.com/cgi-bin/article.cg...RNCR61.DTL&feed=rss.business