Drop shipping business for sale, or direct shipping, is a shipment method that has been around for years and a valuable form of shipping to many manufacturers who use it every day. Most shipments from a manufacturer of goods go through a number of channels before they reach their final resale location. For instance, a toy manufacturer will send thousands of units to its distributor. The distributor will then divide up those units for different retailers and ship them from there. Even after that, the retailers’ warehouses will distribute them to individual locations before they even hit the shelves. With drop shipping, all of those steps are skipped and the product goes from the manufacturer directly to the individual retail location.
Many businesses have great reasons to use drop shipping. If a business is small, it might make more sense to cut out the costs of having so many logistics channels and just ship directly to the customer. Other businesses may have time-sensitive releases that need to be shipped directly to the retail locations, or even to the individual consumers, themselves. One of the oldest and most popular reasons for drop shipments, especially in the modern age of entertainment, is movie and music new releases.
With the rise of illegal copies and pirated material, it has never been more important to major studios, video game creators, and record labels to ensure that consumers don’t have access to the time-sensitive material until the intended time. Newly released movies, video games, and CDs typically don’t arrive at stores until the night before their release date. Doing this cuts down on the chance of them being stolen and released early, potentially spoiling an entire marketing campaign.
More recently, one of the largest users of drop shipments are home shopping channels, such as HSN and QVC. These channels use drop shipments to ensure the proper attention is paid to the details of an order and to ensure that it goes out on time. In addition, as someone trying to sell things through the home shopping television outlet, the cost savings can be incredibly significant when selecting a drop shipment option, as opposed to using their multi-channel shipment method. Saving the overhead will, in turn, save the seller money.
To conclude, drop shipping, also known as direct shipping, is a logistical option for getting a product into a consumer’s hands in the most direct way possible, by skipping normal distribution channels and handling the logistical operations themselves. Drop shipping is a choice that a manufacturer has to make based on client need and business demand, as well as operational budget and logistical capacity. It’s not always the best option for every company and it surely isn’t the most popular. If it does work for you, however, you may be getting your products from your production lines and into your consumers’ hands before you know it.