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What Is Drop Shipping?

Last Updated: Wednesday 12th July 2017

Drop shipping websites

Drop shipping is a method of order shipment, whereby a wholesaler, packs and ships an order directly to a retailers customer, so that the retailer doesn't have to keep or own any physical stock. This can be very beneficial for a new entrant into the market and offers a low-cost option for a savvy business operator.

The drop shipping company is usually the manufacturer or producer of the raw goods or product, and the retailer is the one that does the direct selling of the product to the end user.

The Drop Shipper holds the stock and ships it on demand allowing the retailer to concentrate on selling the product and marketing the product in various channels.

The retailer generally lists these products and promotes the products on his own website or through a variety of other channels that the seller has at their disposal and adds a margin to the price the drop shipper charges.

When the retailer receives the order and payment, they then notify and pay for the goods, then the drop shipping company packs and ships the order directly to the customer. Leaving the retailer with a tidy profit.

The main disadvantage of drop shipping is that the drop shipping company can often sell the same product to many retailers thus making the retailers product a highly competitive product, susceptible to price wars.

The T-shirt fashion retailer can often be in a different situation, because, although, the drop shipping company may print T-shirts for many retailers, the retailer can have their own set of designs that are exclusive to the retailer. This can be very beneficial to the retailer, knowing that they have designs exclusive to their store.

T-shirt Printing Australia offers a drop shipping service for its customers. We can produce, pack and ship your orders directly to your customers.

If you own an online store, our web development team has created special software that talks to your website and notify our production department that there is an order ready for production. Talk to us about drop shipping  t-shirts

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